Compaq Computer Corp, which has seen all its major rivals chip away at its PC market leadership in Europe, has announced a common pricing strategy for the continent, and an increased role for the internet in the company’s sales strategy.
In an announcement interpreted by analysts as an attempt to regain pricing control of its products on the continent, Compaq is introducing an internet-led strategy that will see its machines quoted at the same price all European markets. The company owes much of its earlier success to the power of its channel relationships in Europe and is taking a leaf out of Hewlett-Packard’s book by encouraging channel partners to earn their margin through value-added services, while imposing its own pricing strategy for customers via the web.
However, Compaq also said it wants to control costs by reducing the number of intermediaries that stand between its customers and its factories. This suggests that some resellers will inevitably be squeezed out, even though the company claims it wants to ultimately expand the numbers and breadth of sales partnerships.
