Eckhard Pfeiffer has wasted no time in assessing the changes that need to be made at Compaq Computer Corp, and has announced a radical reorientation under which Compaq will mix it in the gutter with the low-cost clone manufacturers, and abandon its dealers only policy. It is considering mail order marketing, To the mainstream market, the kind of features we had on our products were mostly not needed and not appreciated, and so were mostly out of the price range, Pfeiffer said, adding that the company was preparing straightforward entry-level products. Its major new target markets will include home, education, small and medium-sized businesses and government offices. The company does not plan any more lay-offs but says that it must reduce its cost of manufacturing. It has signed Merisel Inc and Tech Data Corp to distribute its machines in the US to value-added resellers, and has retained General Electric Computer Service and TRW Customer Service Division to offer on-site maintenance, work traditionally done by its dealers. As well as Rod Canion, five other officers have left, taking voluntary retirement because Pfeiffer found the management structure unwieldy.
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