Leading computer manufacturer Compaq (NYSE: CPQ) expanded its e-commerce presence today with the launch of an online software store for small businesses. The store, which can be accessed via Compaq.com, is a co-branded project that is operated by software retailer Beyond.com (Nasdaq: BYND).
The store includes more than 5,000 software titles that can be bought and downloaded.
“A major advantage of our site is that Compaq customers now have the choice and convenience of digitally downloading software while also purchasing hardware, options and services directly from Compaq,” said Kenny Kurtzman, vice-president and general manager of Compaq.com.
Beyond.com Gains Awareness
The new site also gives Beyond.com access to Compaq customers, who are now just a click away from Beyond.com’s library of approximately 44,000 products.
“There are more than five million small businesses in the U.S. with PCs, each spending an average of $2,000 [US$] per year for software,” said Mark Breier, president and chief executive officer of Beyond.com.
This is just the latest move that should boost market share for Beyond.com, which completed its acquisition of BuyDirect.com last week.
Compaq’s E-commerce Strategy
Compaq is currently reevaluating its e-commerce strategy. On February 15, the company stopped selling its computers to Internet-only retailers, including Compaq-owned Shopping.com. Compaq said it would review this policy after 90 days.
But Compaq is also supplying Free-PC with the 10,000 computers the idealab! company is giving to consumers who are willing to view advertising in exchange for a free computer.
Meanwhile, Compaq is also facing pressure from Dell Computers.
Dell has recently has ramped up its e-commerce presence by launching the Gigabuys superstore, signing a co-branding agreement with Amazon.com, and starting an affiliate program.