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Horizontal and Vertical Relations

Question 21

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Horizontal and Vertical Relations. Dell Computer Corp. designs, develops, manufactures, markets, services and supports a wide range of computer systems, including desktops, notebooks and network servers, and also markets software, peripherals and service and support programs. They are the world's leading direct computer systems company and one of the top five computer vendors in the world. Compaq Computer Corp. designs, develops, manufactures, and markets a wide range of personal computing products, including desktop personal computers, portable computers, PC servers and peripheral products that store and manage data in network environments. The company markets its products primarily to business, home, government, and education customers. Compaq operates in one principal industry segment across geographically diverse markets.
A. Do Dell and Compaq share important elements of a vertical relationship? If so, how?
B. Do Dell and Compaq share important elements of a horizontal relationship? If so, how?

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