Compaq reform: The way to integrate online and offline (1)

Chinese Traditional manufacturing or http://www.aliyun.com/zixun/aggregation/31782.html "> Brand Enterprises, the sense of smell of e-commerce, in fact, not as keen as expected." It is not because of the vision or vision of entrepreneurs, but the traditional entity system is too big and deep, and extremely profitable, competitive barriers and high, it is not too much power to toss the line on the set. However, in foreign countries, especially in the United States, many companies involved in E-commerce, because more adept in the "direct" (direct-to-consumers) model (such as through a variety of catalogs and dotted physical stores), the encounter online and offline conflicts between the content and China is not the same. And in Chinese enterprises wading in the business of electronic commerce, an urgent problem to be solved is how to balance the existing entity channel business interests; American traditional enterprises do E-commerce, the first is to face the online and offline resources How to integrate, how to network sales and hundreds or even thousands of physical stores together to form a strong net, Instead of two separate skins.

Review a case of Compaq computer history. We know that, in the late 90, Compaq was the world's PC powerhouse and, in order to attack the second-place threat of Dell's direct sales model, launched an official E-commerce website in 1998 to sell computers directly. and in order to balance the interests of the channel under the line, not online and offline fight up, Compaq adopted a "smart" approach: dedicated to the online development of a set of products, is the later Prosignia series of computers, specialized for small and medium-sized business computers.

It now seems that the direct marketing model of Compaq's rival, Dell, is strong because it is a complete system that traditional manufacturing companies want to copy, most of which can only get a fur. Compaq has launched an E-commerce platform, but the premise is to avoid hurting existing channel business interests,----however, traditional entity companies in the embrace of E-commerce, this is inevitable. The more successful in the traditional field, the better to be prepared to hit the wall when expanding the frontiers of the Internet. Compaq in the Internet on the battlefield with Dell desperate struggle, and have to take care of the offline channel interests, like a samurai holding a spear, to show fists, but found the feet to entangled, powerless. Although Compaq was cautious, the channel operators are still angry. The channel trader does not think Compaq is competing with rivals, but that it is Compaq's desire to bypass the channel and take its place. However, the array of Compaq did take some means to let the channel traders looked at each other, for example, the North American market Compaq to the original 39 channel distributors chopped into only a few. Compaq is doing this simply to reduce the cost of the inventory that is being pressed on the channel vendor. After all, this inventory is a huge burden compared with Dell, which has strong supply chain management capabilities.

Later, Compaq's eventual merger with HP, to some extent, did not form a huge competitive advantage in the field of electronic commerce, but the experience of Compaq on line and offline was invaluable.

I'm going to introduce the solution to the "conflict: online and offline integration approach (2)" Next in the Iris column.

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