CDW, INC: A New Model for Buying Hardware

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CDW, INC A New Model for Buying Hardware

• By Brittany Bernhofer

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CDW

• CDW was founded in 1984
• Today it has more then 400,000 customers.
• CDW is based in Vernon Hills, Illinois
• CDW generated 4.6 billion in sales in 2003
• CDW was also voted 11 in Fortune magazines poll
  of the Best 100 Places to Work in America

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Branches of CDW

• There are four branches of CDW
• CDW, Inc -- General Business
• CDW Government
• CDW Canada
• Berbee offers world-class IT solutions in
  advanced technologies primarily across the Cisco,
  IBM and Microsoft platforms.

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CDW, Inc

• CDW, Inc provides computer hardware products and
  services to business, government, and education.
• It describes itself as a B2B company
• Although individuals can purchase from CDW, its
  services and support are directed toward the
  business customer.

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Agent Program

• Usually, the hardware needs of small businesses
  are supplied by VARs ( value-added resellers)
• VARs are small, local companies that analyze
  customer needs, determine computer requirements,
  buy hardware, and set up and maintain the
  systems.

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Agent Program Cont.

• In late 2004, CDW announced a new program called
  the Agent Program.
• The Agent Program involved CDW partnering with
  existing VARs.
• CDW will sell the hardware to the customers and
  the VARs will continue to provide setup and
  support services and will bill the customers.

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Will it work?

• This Agent Program is controversial because it
  requires transforming what had been small CDW
  competitors into allies.
• CDW believes the new model will work because it
  will allow them to specialize in what it does
  best and will allow the local VAR to specialize
  in what it does best.

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• ANY QUESTIONS OR COMMENTS ?!