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To: Mohan Marette who wrote (729)2/15/2000 9:13:00 PM
From: Mohan Marette  Read Replies (1) | Respond to of 1471
 
*OT* Compaq (India) goes direct, to sell PCs on the wire

Sudeshna Banerjee

New Delhi: Taking the cue from Dell Computer's mega successful direct business model, Compaq Computer India has decided to sell PCs via the Internet here. The Indian arm of the world's largest PC manufacturer will not only sell direct but offer custom-configured PCs on its e-commerce enabled portal. The boxes will be sourced from Compaq's manufacturing base in Bangalore and will be delivered through its existing distribution channel.

Compaq Computer India is expected to invest in excess of $10 million this year to fuel its new strategy, which is in line with the computer major's global e-business strategy. Compaq the world over has been facing a lot of heat from direct sales merchants like Dell and Gateway, forcing it to revisit its distribution mechanism. However, in India Compaq has decided to take the early mover advantage.

"We have a strong channel presence here, comprising resellers and distributors across the country, which takes care of our sales. However, we realize the need to improve our sales via the Internet too. So we decided to focus on this strategy where anyone can order a PC by defining a desired configuration," said Sangeeta P Mahendran, Manager of Enterprise Solutions at Compaq Computer India.

The company also plans to put up an India-specific website. The URL of the site, however, has not been decided upon.

As an extension of its new business plan, Compaq will also build on its solution provider positioning. It will leverage its existing partnerships with industry leaders like Microsoft, Cebel, i2, SAP, and BaaN to provide complete solutions to customers. Compaq will now focus on KM, CRM, and SCM solutions for its clients

-Express Computer
Monday, 21 February 2000