Aussie ops a benchmark for Compaq: Analyst

Compaq Computer’s Australian operation is leading the global charge for the company, and should serve as an example of how "things should be done", according to a visiting industry analyst.

SYDNEY (ZDNet Australia)--Compaq Computer’s Australian operation is leading the global charge for the company, and should serve as an example of how "things should be done", according to a visiting industry analyst.

The PC maker’s recent decision to cut 12 percent of its global workforce will have minimal impact in Australia and New Zealand, according to a visiting industry analysts, who believes “lessons can be learnt from the success of Compaq [in Australia]”.

In July, Compaq announced it would cut 8,500 jobs from its global operation on the back of lower than expected second-quarter earnings. The company attributed its US$600 million revenue shortfall to slowing sales and currency weakness in both Asia and Europe.

Visiting United States Information and Technology analysts Terry Shannon told ZDNet the global restructuring would have minimal impact in Australia and New Zealand.

Impressed by Compaq’s South Pacific operations, Shannon believes Compaq’s upper management should come down to Australia and NZ “just to see how things are done”.

“Compared to one year ago, the operations are doing very well,” Shannon said.

Shannon believes the fundamental reason for Compaq’s success in Australian and NZ is due to better marketing know-how, which Europe and the US seem to be lacking in.

“Products and technology have never been Compaq’s problem, it has just been the marketing. It’s good to see it’s being done right down here.

“We can’t clone Australia and New Zealand and replicate it in the US and Europe, but lessons can be learnt from their success.”

According to Shannon, both operations perform with a smaller group of people, with a committed management team and higher morale among staff.

“They know what they are doing in terms of marketing, they are right on top of that,” he added.

Talking about the global operation's transition from the Alpha road to Itanium-based systems, Shannon says there is no reason why it won’t work. However, the operation’s biggest issue is “getting the message out there”.

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