computer hardware giant, Hewlett-Packard Co. is planning
to go direct. H-P plans to sell its PCs to corporate clients
directly. This has given the jitters to some of its competitors,
adding to the confusion in this market.
sells its PCs, printers, scanners and consumables directly-
through its website. Now it is planning to do likewise
with its corporate customers. Such a move would seem logical
when the web is emerging as a strong primary and support
selling media. This helps it get closer to the customer
and reach out to them faster. Cost competitiveness comes
from cutting the margins- so out go the channel levels
and thereby comes the edge in price. H-P plans to sell
about a third of its PCs this way.
But where will
the dealers go? H-P, which has maintained a clear demarcation
when it comes to treading on retailers'' turf, plans to
bring them into their fold of online dealers with whom
the customers can conduct their business, with a list
of recommended local dealers on their website. H-P will
go direct for large corporate customers but move into
the background when it comes to system integrators and
other dealers. The infotech industry is full of diverse
marketing strategies for similar products.
manufacturer has sworn by direct sales but then
Compaq, which has its network of dealers and retailers,
got into trouble when they tried the same strategy.
has confessed that they want to be there for the online
customer going PC shopping, to rake in their share. Dell
is doing so too, with its Dell Gigabuys.