Viewpoint

1. The infiltration of the Internet, individualization of consumer's demands, development of regional markets, subsection of product markets, and assembled computer channels bring new opportunities and challenges.

2. With the transferring of the developmental center of society and the market from the economy to the individual, the focal point of the IT market has also been transferred from products to consumers. The level of accumulated consumer resources reflects the competitiveness of a channel. Traditional channel levels are usually estimated according to the level agent system. Modern channel levels are assessed according to consumer resources.

3. Efficient solution of contradiction between the landscape orientation conformity and portrait penetration of channels is the precondition and guarantee for success of both flat and solid channels. Flat channels require that manufacturers have a powerful channel landscape orientation conformity capacity; solid channels require manufacturers with the system of healthy, flexible channel portrait widening. The combining of the two aspects is the basic contents of future channel management.

4. Development and sharing of information technology reduce the profit margin. For this reason the IT industry is heading towards the age of meager profits. Profits in the PC industry are also becoming more and more nominal. Channel stability depends on the profit space the manufacturer gives to dealers. Reasonable promotion and supervision is the best ways to increase channel competitive power and loyalty.

I. Overview of the development environment for the channel of assembled computers in 2000

1. Economic environment

2. Industrial environment

3. Market environment

a. Total volume of the assembled computer market

b. Structure of the assembled computer market

Chapter Highlights

The favorable turn in China's macro-economy, the recognition of the importance of informatization construction by the Government, and the infiltration of Internet technology are all promoting the high speed development of China's computer market and advancing the innovation and revolution of assembled computers.

II. Development status of assembled computers in the year 2000

1. Channel system and channel choice

a. Channel system

b. Channel choice

2. Channel problems and channel revolution

a. Course of channel development

b. The factors that influence the stability of channels

c. Transformation of channels

3. Channel strategy and increment service

a. Typical channel strategy

b. Increment service

Chapter Highlights

This chapter analyzes the current development status of assembled computers in China from three aspects (channel choice, channel problems and channel revolution, channel strategy and increment service). Desk-top PCs, servers and notebook PCs constitute the main products of the assembled computer market. Desk-top PCs consist of commercial and appliance PCs, and their channel system and channel model is composed of trade direct selling and home distribution. The channel for notebook PCs (designed for commercial use), is certainly composed mainly of trade agents. The channel for servers is mainly based on systems integration, and the dealers pay more attention on profits when choosing channels. Suppliers also consider factors such as funds capacity, credit, and consumer resources of dealers. The contradiction between these two parties is a major cause of the un-stability and transformation of channels. The ultimate goal of transformation of channels is no more than realizing the benign operation and harmonious development of channel systems through the optimization and conformity of channels.

III. Basic features of the construction and management of channels in 2000

1.Channel conformity is the basic strategy of channel construction in 2000

a. Summery of channel conformity

b. Strategy for the achievement of channel conformity

2. Material circulation and flow of information of the channel is the focal point of channel management in 2000

3. Increasing the degree of loyalty to the channel is the goal of channel construction and management in 2000

Chapter Highlights

This chapter emphasizes the basic features of channel development of assembled computers in China in 2000.The research shows that conformity of the channel is the basic strategy for channel construction. The strategy of channel conformity is mostly composed of channel optimizing, interaction alliance and fuzziness control. The focal point of channel construction and management is not only on maximizing profits, but more importantly on increasing the degree of loyalty and competitive power of a channel. This is accomplished through channel promotion and supervision, so as to let channel operation play a more important role in the construction of a manufacturer’s brand. Specialty stores and license dealings are successful cases of channel construction and management.

IV. Forecasting the development direction of assembled computer channels during 2001-2003

1. Analysis of the factors which influence channel development.

a. High-speed development of the assembled computer market and channel

development

b. Infiltration of the Internet economy and channel development

c. Individualization of consumer's demands and channel development

2. Research on the direction of several main channel models

a. Electronic channel and direct selling

b. Flat channel

c. Solid channel and distribution

d. Chain selling

e. License dealing

Chapter Highlights

This chapter analyzes the main factors that can influence the future development of the assembled computer channel in China from the aspects of development direction of the assembled computer market, infiltration of the Internet economy and the individualization of consumer’s demand. By combining real cases, it has analyzed the hot issues such as channel electrification and direct selling, flat channel and distribution, and channel development for chain dealings and license dealings.

V. Conclusion and suggestions

1. Channel model: coexistence of flat and solid, direct selling and distribution

2. Channel construction: the center has transformed from products to consumers

3. Channel management: the merging together of landscape orientation conformity and portrait penetration

4. Channel policy: emphasize both promotion and supervision