To: T L Comiskey who wrote (80932 ) 11/17/1998 10:11:00 AM From: Mohan Marette Read Replies (4) | Respond to
'Just the facts ma'm'- Compaq,the Conflict from within. making a large direct program a long-term losing strategy. He said another reason for not fully embracing direct is that on the "complex configuration curve, only resellers can adequately deliver solutions." "Some resellers working closely with Compaq said the real issue isn't channel or direct, it is Dell Computer. "The problem is they're trying to find the right position," said Mark Romanowsky, vice president of Services for Jade Systems, Long Island City, N.Y. "This Dell thing is weighing heavily on their shoulders and they're trying to find the right initiative to bring the cost down and to fight Dell." 'experts' speak: But the market researcher questioned Compaq's ability to build cost-effective infrastructure, especially when promoting a DirectPlus 800 number. "Dell has all this infrastructure built for Web-based sales, and I don't see customers abandoning their confidence in Dell for Compaq," she said. Analysts still question how far Compaq can carry its small-business initiative or what the company would do if customers choose to buy more direct than from the resellers. a recently announced shift by Compaq Computer Corp. [NYSE:CPQ] toward a direct sales model is a bad move in the long run. "Their new strategy apparently fails to recognize several important factors, including the powerful relationships which resellers have with their customers (the ability to influence brand preference), as well as the importance of third-party products offered by resellers and distributors, which are critical to providing customers a complete solution." techweb.com
