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Case studies Compaq Connect Competitive Advantage Supply Chain Strategy
Case studies Compaq Connect Competitive Advantage Supply Chain Strategy Compaq Connect Competitive Advantage Supply Chain Strategy |
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 T | M | G was invited into discussion with
Compaq Australia
to review channel strategy. The largest
PC brand in Australia was "other" - the white box, no branded product sold through thousands of resellers
around Australia. The Dell Direct model had made inroads into "white"box and Compaq Australia
wanted to beat Dell to gains from the "white"box.T | M | G was asked to help develop strategy for successfully capturing strong financial returns from penetrating "white"box. Business Challenges Supply and configuration logistics in the Compaq environment carried some long lead times with the selling price of goods falling whilst they were in transit - a serious cost to margin. The nature and buying criteria of whitebox customers was not well understood and major retailers were not keen to custom build in volume. There were conflicting views at Compaq and other major IT firms about the merits of going direct and how that might affect channel dynamics. The T | M | G facilitated Client Solution Stimulating a rigouros analysis of options, it became apparent that an "off High Street" hub, delivering direct B2B (business to business) customization serving a catchment via outbound sales representatives, call centre and web based ordering and service at the store / workshop. This solution stayed away from mainstream retail, allowed for the penetration of SMEs – the largest buyers of “whitebox” and could be operated at low cost relative to volume with the number of locations planned facilitating significantly reduced lead times and losses on goods in transit. T | M | G was commissioned to undertake the implementation of the solution. Results The project forecast significant sales. The view was taken it should be managed within a context of perceived conflict with other channels and business units at Compaq. To manage this, the strategy was augmented in four ways:
The project remained in pilot mode whilst changes took place within Compaq. During this period, marketing support was stalled; a US program for retail Kiosks introduced to Australia and merger negotiations with Hewlett Packard came to a head. As these client changes converged, the Compaq Connect project became a casualty of the HP / Compaq merger. Add this page to your favorite Social Bookmarking websites 
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www.tmgconnect.com.au
Toll Free in Australia 1800-100-666
Melbourne 03 9010 9010
Fax: 03 9857 3733
Snail Mail: PO Box 698
Balwyn North - Victoria 3104
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