CDW 2003 Annual Report Download - page 15

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We adhere to a core philosophy known as the CDW CIRCLE OF SERVICE, which places the customer at
the center of all of the Company’s actions. The philosophy is based on the premise that “People Do Business
With People They Like.” The CDW CIRCLE OF SERVICE is a graphic reminder to our coworkers that good
service leads to good experiences and increased sales. A fundamental element of the CDW CIRCLE OF
SERVICE is our coworkers, who are highly motivated and incented to share in the Company’s success.
Electronic versions of CDW’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and amendments to these reports are available free of charge through our Web site,
CDW.com, as soon as reasonably practicable after we electronically file these reports with the Securities and
Exchange Commission.
Business Strategy
Our business strategy is to be a high volume, cost-efficient direct marketer of multi-brand, competitively-
priced computers and related technology products and services, while providing a high level of support to our
customers. We believe that the following factors are of principal importance in our ability to implement this
business strategy:
Multi-Branded Solutions. We offer more than 80,000 products, which include a wide range of products
from leading manufacturers including Apple, Cisco, Hewlett-Packard, IBM, Intel, Microsoft, Sony, Toshiba and
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. 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 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 directly from manufacturers and economies of scale
in purchasing products. Our size and financial strength allow us to negotiate advantageous purchasing terms and
earn vendor rebates and 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 national television advertising. These
activities are intended to generate customer response and a high level of awareness of CDW. Our marketing
activities are directed to commercial customers and the decision makers in commercial organizations.
Customer Service. We have over 1,900 account managers and sales specialists who are highly trained in the
Company’s products, systems and philosophies, enabling them to provide a high level of customer service. We
assign an account manager to each customer. 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
specialty sales support teams that have in-depth knowledge of and experience with complex technology products
and applications, such as network solutions, storage applications and software licenses.
Custom Configuration. We offer custom configuration services such as the installation of accessories and
expansion products, loading of software, imaging for custom applications and configuration of network
operating systems. Our custom configuration services benefit our customers by reducing the cost and time
necessary to deploy new products into their existing technology environment.