SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mike Gordon who wrote (21769)3/14/1998 12:04:00 PM
From: Jason W. France  Read Replies (1) of 97611
 
Mike,

" Can anyone on this thread demonstrate why this is not an effective way to boost sales?"

sure I will give it a try.

good analysis your math is correct and I never thought about it until now. the radio shack deal could easily lead to the unit sales and maybe more (I bet they sell alot more than 4/week!) so in answer to your question it will definetly boost sales thru that outlet but consider this:

I would guess that radio shack deal seriously pissed off COMPUSA due to its exclusive nature. I would also assume that this strained even further the precarious relationship between cpq and compusa. so how many sales will be lost if COPMUSA takes shelf space away from cpq in favor of their own store brand or another OEM (like IBM)

But there is even a more important question

Why would you want to invest in a company that is focused on gaining share in the first time consumer PC market which radioshack serves, i.e. sub 1000 market. this is going to continue to be a bloodbath. there are some other PC market segments that will be much more profitable over the next few years.

the radio shack deal ( or CPQs) participation in this entire market segment for that matter) is another example of a questionable and debatable strategy on the part of cpq execs that does not appear to directly add to shareholder value.

your thoughts?

jason
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News