CDW 2006 Annual Report Download - page 13

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3
We believe that the following factors are of principal importance in our ability to implement our
business strategy:
Multi-Branded Products. We offer more than 100,000 products, which include a wide range of
products from leading brands including Acer, Adobe, APC, Apple, Cisco, Fujitsu, Hewlett-Packard,
IBM, Lenovo, Microsoft, Panasonic, Quantum, Samsung, Sony, Symantec, and ViewSonic, among
others. With this broad selection of products, we can provide our customers with fully-integrated,
multi-branded technology solutions and the convenience of one-stop shopping. We also continuously
review and enhance our product mix based on new product introductions and the needs of our
customers.
Customer Focus. We focus our sales and marketing efforts on attracting and serving commercial
customers, consisting of all customer types other than consumers. We believe commercial
customers typically have ongoing requirements to purchase sophisticated products and systems and
value our relationship-based approach and high level of service. Our field sales force actively calls
on selected commercial customers and prospects in person to augment our inside sales force. We
also reach our customers through our customized Web sites, CDW@work® and CDWG@work®.
Competitive Pricing. We are able to offer our customers competitive prices due to our low cost
structure, efficient distribution methods, ability to purchase products both directly from manufacturers
as well as through distributors, and economies of scale in purchasing products. Our size, financial
strength, and ability to successfully serve our customers allow us to negotiate advantageous
purchasing terms and earn vendor incentives.
Marketing. We use a marketing mix of direct response activities, including our catalogs and trade
magazine advertising, combined with a multifaceted branding campaign, including print media,
television and online advertising, and other activities. These activities are intended to promote a high
level of awareness of CDW and generate customer response. Our marketing activities are directed
to commercial customers and the decision makers in commercial organizations.
Customer Service. Our sales force consists of account managers, field sales representatives
and product category specialists who are highly trained in the products we sell and the Company’s
systems and philosophies, enabling them to provide a high level of customer service. Account
managers obtain an understanding of their customers’ businesses and technology systems and are
able to recommend integrated product solutions based on customer needs, past purchases, and
technological developments. Our account managers provide a high level of customer service utilizing
CDW’s proprietary customer relationship management system. Customers also benefit from CDW’s
team of technology specialists who have in-depth knowledge of and experience with complex
technology products and applications in multiple product categories, such as networking solutions,
storage applications, and software licenses.
Advanced Technology Solutions. We provide a variety of advanced solutions and customized
services to meet our customers’ complex technology needs, including strategic technology planning,
network infrastructure and unified communications, systems and storage, security, productivity
applications, and managed services. These solutions and services, provided by our Berbee
operating segment, are performed by engineers and data center professionals who customize
solutions designed to improve customers’ productivity and competitive position.
Custom Configuration Services. We offer a broad range of custom configuration services such
as the installation of accessories and expansion products into PCs and servers, loading of software,
imaging for custom applications, and configuration of network operating systems and servers. These
services are performed in specialized configuration centers within our distribution centers. Our
custom configuration services benefit our customers by reducing the cost and time necessary to
deploy new products into their existing technology environment.