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To: kemble s. matter who wrote (139821)8/18/1999 2:42:00 PM
From: Calvin  Read Replies (2) | Respond to of 176387
 
Best joke that I've heard in quite a while

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Compaq opens stores in Australia

By Michael Kanellos
Staff Writer, CNET News.com
August 17, 1999, 7:35 p.m. PT
Taking one more step down the path toward direct sales, Compaq said it plans to open retail outlets in Australia.

"The world of personal computing is changing and we are changing with it," Ian Penman, managing director of Compaq Australia, said in a statement. He added that the stores will be branded with the Compaq name.

Compaq's decision comes at a time when traditional computer makers are trying to keep up with the rapid growth of companies such as Dell, which sell directly to the customer. Companies that sell directly to customers also have been able to sell for lower prices, or for more profit, because the costs associated with direct sales are lower.

A shift to direct sales, however, comes with its own problems, including conflicts with computer dealers. Compaq's Australia plan is proving no exception. Harvey Norman, a retail group in Australia, has decided to drop Compaq products as a result of the new stores. Analysts and computer executives have said that these conflicts can potentially lead to depressed sales as dealers switch allegiances to other brands.

It is uncertain whether Compaq will open stores in the United States. Gateway has attributed part of its recent sales increases to its Country Store outlets. Customers do not buy equipment at Country Stores. Rather, the stores exist to let customers "test drive" Gateway computers, which they then can order online.