Business Services Industry
Computer retailer sharpens its Web strategy
Crain's Chicago Business, June, 1998 by Littman, Margaret
MARGARET LITTMAN Vernon Hills-based Computer Discount Warehouse - CDW Computer Centers Inc. - built its business by offering rockbottom prices. But the industry has become far more price-sensitive since CDW was founded 14 years ago. Some computer retailers, like Skokie-base Elek-Tek Inc., have foundered, while others thrived by identifying new customers and distribution outlets to make up for lower margins.
Key among those new outlets is the Internet. Computer hardware and electronics-related products are expected to total more than 30% of the $5.8 billion in annual purchases made via the Internet this year, according to New York-based Jupiter Communications, a research firm. Experts say the sales represent new revenues, rather than sales cannibalized from other...
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