Riding High

Compaq's 1992 restructuring was one of those events that, with hindsight, marked a turning point. After years of losing sales to low-cost rivals, the personal- computer maker struck back by sharply hiking productivity and cutting prices. By 1994, revenues had more than doubled, earnings had quadrupled, and Compaq Computer Corp. had leapt to the No.1 position in the PC business, with a 13% market share. Now, in a quest for even faster growth, Compaq is investing in new information systems, overhauling manufacturing techniques, and chasing overseas sales. "For us to keep growing, we have to put in place state-of-the-art technology, make constant progress, and make constant improvements," says Compaq Chief Executive Eckhard Pfeiffer. "If you stand still, you will fall behind."

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