Dealers accuse Compaq of jilting them

Article Abstract:

Long-time retailers of Compaq's personal computers accuse the company of deserting them in a bid to enter faster-growing distribution channels such as warehouse stores, superstores and mail-order. Compaq's fast-selling, low-cost ProLinea line has been in short supply for months, and the dealers say that they are the last to get product. The shift is part of an industry-wide trend away from traditional retailers that has many of these retailers worrying about their very survival. While rivals such as IBM and Apple were entering the new distribution channels, Compaq resisted, citing a sense of obligation to its dealers. However, the company is now rushing posthaste into the new channels. Compaq Senior VP Ross Cooley acknowledges the dealers' anger, but says their overall Compaq business is up markedly since the advent of the ProLinea line.

Computer and software stores, Computer industry, Microcomputers, Supply and demand, Distribution, Computer stores, Distribution channels, Logistics, Microcomputer, Market Analysis, Distribution Management, Vendor Relations, Retail/Reseller Channel, Shortage

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Compaq is revamping its printer line; analysts expect business to incur loss

Article Abstract:

Compaq Computer Corp revises its line of printer products in order to combat HP's dominance in that market. Some printer products are being discontinued as part of the marketing strategy, but industry experts are predicting that Compaq will lose about $10 million for stopping those projects. The ProLinea low-priced printer line sold well in 1992, but new products are not expected until 1994, and some analysts suspect that Compaq will stop making printers altogether. Compaq general manager David Black was fired in February 1993, and several new low-priced printers Black supported and planned to release in the spring and summer were discontinued. Compaq is not expected to rival HP's 68 percent market share regardless of its new strategy.

Computer peripheral equipment, not elsewhere classified, CPQ, Marketing, Computer peripherals industry, Market share, Printers (Computers), Printers (Equipment), Competition, Printers, Marketing Strategy, Losses, Product Discontinuation

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