How did Compaq compete with IBM in the personal computer market?

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A laptop computer — personal computer Programmers may use computer science to design portable computers such as laptops.

Compaq competed with IBM by mastering the personal computer clone market through a strategy of "reverse engineering" IBM’s copyrighted technology to create machines that were 100 percent compatible with IBM software and peripherals.1

Unlike other clone manufacturers that focused primarily on low prices, Compaq differentiated itself by prioritizing performance, portability, and advanced graphics. To build trust, the company employed a veteran technical staff, which provided an aura of reliability that helped win over corporate clients.1

Compaq also distinguished its sales strategy by relying on a network of independent retailers rather than direct marketing, and it famously maintained loyalty to these dealers. Furthermore, Compaq challenged IBM’s industry leadership by refusing to adopt IBM’s proprietary PS/2 bus design in 1987. Instead, Compaq championed the original AT bus and successfully led other manufacturers to adopt the EISA (Extended Industry Standard Architecture) design. This move solidified Compaq's status as a technology leader, eventually allowing it to surpass IBM as the world’s largest seller of PCs by 1995.1