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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (38139)	12/2/1998 10:00:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

How's this! Victor Compaq Computer Japan to Strengthen Direct Sales of PCs December 2, 1998 (TOKYO) -- Compaq Computer K.K. of Japan said it will strengthen its direct sales system from the middle of 1999, mainly by expanding direct sales to major companies as well as small and midsize companies. The direct sales service had only been for limited existing customers, including those of the former Tandem Computers Japan Ltd. and the former Digital Equipment Corp. Japan. Compaq said it is aiming at two specific targets. The first is to compete directly with successful direct sales PC companies such as Dell Computer Corp. and Gateway 2000 Japan Inc. Compaq will feature some "killer products" with low prices, and will target small and midsize companies. The other target is to respond to license and support services that many large companies have requested Compaq to offer directly. In fiscal 1998 (ending December 1998), Compaq was unable to gain large channel sales, but its direct sales teams scored big by getting big orders from FamilyMart Co., Ltd., a major convenience store in Japan. Expectations had been high for expanding the direct sales business. Compaq Computer Corp. of the United States announced Customer Choice Model (CCM), a new sales program, on Nov. 11. The system will be applied to Compaq Japan from the middle of 1999. "CCM provides client companies with a variety of options for purchasing computer products and services, and by using CCM, we will try to enhance customer satisfaction," a Compaq Japan official said. The company will prepare flagship products and services before starting the CCM program and it will diversify sales systems. Also, the company said it is considering a move to expand its sales channels for a variety of prospects. Applicable to direct sales and services are the New ProSignia Family, announced by Compaq in the U.S. market on Nov. 11. The configure-to-order (CTO) lineup consists of low-priced PC servers, desktop PCs, notebook PCs, and related services. "Our hardware products will be equal to or lower in price than those of Dell and Gateway," an official at Compaq Japan said. Compaq will offer its support service package called "CarePAQ." In Japan, those products and service packages will ship in the middle of 1999. Along with the direct sales strategy, the company said it would continue with indirect sales of its PC server ProLiant, and DESKPRO, a desktop computer for corporate use. "CCM is a business model employed by local Compaq companies in various countries," said Makoto Baba, a Compaq Japan vice president. "Business practices of each country should be considered at the outset, and Compaq Japan will not necessarily introduce CCM exactly in the same way as the parent company," Baba said. "Sales of PC servers and computers via the Internet in Japan are only a fifth of the level of such sales in the United States. Even after we start direct sales, we are likely to depend on indirect sales for a while," Baba added. Compaq's Japan unit sent officials to visit every large distributor prior to the announcement of its concentration on direct sales. Specifically, the company sought their understanding. Some value added resellers (VARs) reacted harshly to Compaq's plans, in comments to Nikkei Watcher. "We cannot accept any agent program from companies like Compaq that regard retailers as only brokers. Even if we manage to generate the same profit level, our sales will fall to a tenth, and in such a case, we will have to sell products of other makers," an official at a VAR said. "Compaq's CCM program will be designed for Japanese needs," Baba said. (Nikkei Watcher on IT Business)

To: Elwood P. Dowd who wrote (38139)	12/2/1998 10:04:00 AM
From: D. Swiss	Read Replies (3) \| Respond to of 97611

Hey Dowd, can you please explain something to me. Why is it that the CFO - Earl "the Pearl" Mason owns only 7000 shares in this company. There are only two choices: either he is extremely smart and knows a bad investment when he sees one or he is not financially astute. Either choice does not bode well for the future of this stock. biz.yahoo.com :o) Drew