Why ibm want ot discourage mail order sale

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Why ibm want ot discourage mail order sale

January 2, 4: The tech giant is in the process of expanding its ambitions to sell and manufacture PCs more like rivals Dell Computer and Gateway. On Monday, the company will increase the number of products it sells directly to consumers and small businesses.

IBM also plans to enter into a direct buying relationship with 14 of its largest customers. In addition, IBM is building up its "build-to-order" manufacturing capabilities, a crucial element in selling PCs and servers directly, and a new campaign to promote direct buying.

Big Blue outlined its plans at its Personal Systems Group headquarters here. As with rival Compaq ComputerBig Blue is finally taking the inevitable steps toward direct sales. The cost advantages of selling direct--less inventory, no middleman mark-ups, etc.

Why ibm want ot discourage mail order sale

In the past, however, both companies concocted manufacturing and sales programs that sought to replicate some of the cost advantages achieved by direct sellers--without alienating their traditional dealers.

Unfortunately, many of these complex programs failed to work as planned, straining relationships with traditional brick-and-mortar partners.

Why ibm want ot discourage mail order sale

Last year, for instance, Compaq bought distribution facilities from Inacom. IBM, meanwhile, pulled out of the retail market and is now building up capabilities to sell more PCs directly in the corporate market.

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To succeed, IBM will have to make serious changes in how it organizes its e-commerce Web site and simplify its product line, said International Data Corp. On Monday, Big Blue will expand from nine to 12 the number of products that can be ordered for same-day shipping and offer new promotions aimed at small businesses.

IBM initiated the shipping guarantee last week. Typically, these and other high-volume items are placed at the back of the supermarket, forcing consumers to walk the aisles of inviting higher-priced items.

In recent weeks, IBM moved from "14 clicks to two clicks to buy," added "Call Me Now" buttons for connecting with a salesperson, and started offering popular models 30 percent less than when purchased elsewhere, Thompson said. The e-commerce site will increasingly focus on brick-and-mortar retail strategies, such as strategically placing impulse items, cross selling and prominently promoting hot, high-margin products.

One new feature suggests additional items in a pop-up box at the time of purchase. These range from surge protectors to Microsoft Office upgrades.

To fuel its direct strategy, IBM plans to move from a build-to-forecast to a build-to-order model, starting in July.


The computer maker also plans to take 14 of its largest accounts direct, offering them built-to-order systems and customized extranets for ordering products. Later in the year, IBM will begin offering similar services and direct build-to-order sales to small businesses.

IBM is moving toward a simplified product offering. The first model, an all-in-one PC built around an LCD display, comes in fewer configurations and is available for consumers or businesses.IBM earns the same wholesale price regardless of whether its products are sold be a mail order or by a full-service retailer.

Why then would IBM want to discourage mail order sales? /5(K). Back to Commercial Solid State Lasers Sub-Table of Contents. Lamp Pumped Solid State Lasers.

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Vienna is the most fully enriched location, and seems to be in roughly the same situation as Oslo. Many thanks to Hermes for the translation from ashio-midori.com IBM earns the same wholesale price regardless of whether its products are sold be a mail order or by a full-service retailer.

Why then would IBM want to discourage mail order sales? Using marketing tactics and legal threats, IBM is actively trying to keep mail order retailers from selling its line of .

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