Analyzing the HP and Compaq merger in terms of capitalist ac

             Hewlett-Packard and Compaq merged this past spring to form one of the largest IT companies in the market today. This merger has reshaped and changed the two companies significantly and has affected the computer industry, in general, to a great extent.
             The purpose of this paper is to look at this merger in terms of Karl Marx's theories of capitalistic accumulation: How the new company benefits from this merger, and what effects it has on the jobs, and how its share of market has been changed?
             I will start with the benefits of the merger for both HP and Compaq together. HP acquired Compaq for $25 billion in a deal bolster its market in the computing industry. HP has been well known for its imaging and printing products; and Compaq until recently was the second largest producer of PCs in the market. After the acquisition of Compaq, the new HP has structured into four broad groups: Imaging and printing, access devices, business services (consultation with companies) formerly associated with HP; and infrastructure business, (encompassing servers, storage and software) from Compaq expertise. This merger has helped centralize the resources of the two companies. It has gathered the assets of both companies to form a new bigger constant capital ($56 billion in assets), which helps the new HP to earn profits rapidly than before (when HP and Compaq were two different companies).
             According to Marx, this combination of the capitals from both companies lead to accumulation of more capital1. And the rate this accumulation is higher than it would have been if both companies earned separately. The idea of centralization eliminates the competition between these two market leaders and their merger together puts them in a position to combine their expertise to compete against the others in the computing industry. Therefore, it would enable the new HP to attract a larger share of the market.
             But how does this greater accumulation of capital
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Analyzing the HP and Compaq merger in terms of capitalist ac. (1969, December 31). In MegaEssays.com. Retrieved 02:01, March 29, 2024, from https://www.megaessays.com/viewpaper/92794.html