The Whitebook Opportunity - What's in It for You

The WhiteBook Opportunity - What's in it for You

At Bizcom, we feel the leading brand of notebook is the one you recommend. Independent research indicates that the recommendation a Value-Added Reseller (VAR) makes to a client is in fact the end customer's choice 75% of the time. The source of confidence you put in the brand and specification recommended knows what to expect from your supplier and manufacturer.

At Compal, we have spent 15 years focused on notebook manufacturing. This focus has resulted in winning the trust and confidence of world-leading international brand companies to design and manufacture millions of notebook computers. In fact, Compal will manufacture approximately 9-million notebooks in calendar year 2004 alone while achieving revenue of over U$6.0 Billion Dollars.

As an investment to grow the notebook business, Compal established Bizcom Electronics Inc in 1992 to provide notebook repair and logistic services for OEM customers. With over 200 people, many years of experience, and the backing of Compal, Bizcom provides the foundation on which channel resellers can now build their notebook business.

The Notebook Business Opportunity

Today, PC may well stand for Portable Computer instead of Personal Computer. Work-style and life-styles demand mobility, and the total benefit and cost of ownership of a mobile PC is proving to be an advantage over a desktop computer. In fact, IDC Research forecasts that 60% of computers sold in the second half of 2003 will be notebook computers.

An increasing factor in the growth of notebook PC market-share is the emergence of channel brands and the availability of customizable "WhiteBooks" - a term that defines unbranded notebook PCs which are private-labeled and assembled by resellers and distributors.

Of course, there are many questions that require clear answers to ensure resellers can profitably participate in the WhiteBook market.

Business Models of the WhiteBook Business

What is your WhiteBook strategy? "WhiteBook" is a metaphor that is used to discuss the multiple business models and go-to-market (GTM) strategies of channel customers.

Here are some examples of business models and GTM strategies that resellers may adopt as their "WhiteBook" strategy: Type of Business Model Product Detail GTM Strategy Reseller markets distributor brand as their Add your services and software to "WhiteBook" offering complement the notebook hardware Channel Brand Distributor provides turn-key Warranty Reseller uses self-directed marketing and Service sales Reseller may adopt same Product Detail as Reseller uses self-directed marketing and Channel Brand model, but instead have sales approach Distributor apply private-label logo label to Private-Label the system. Warranty Service Program is fulfilled by reseller and supported by Distributor. SKD Reseller purchases notebook chassis and Reseller usually has existing system other add-in components in order to control integration expertise, and a marketing (Manufacturer acronym for "Semi- system integration. strategy that requires in-house control of Knocked Down") Sold as private-label or unbranded. the supply chain. Bizcom Warranty and Service

As an added comfort, Bizcom provides in-warranty and out-of-warranty coverage and repair services for all its products. Each system serial number is maintained in a database which identifies our original customer. Systems are standard with

a 12-month warranty from original date of sale. Extended Warranty Program, parts and service program is handled by Bizcom OEM channel partners.

But can I compete?

You are undoubtedly aware of the margin pressures and negativity of selling "only" hardware. By creating value, you give yourself the opportunity to charge for it. By maintaining focus, you give yourself a clear chance to prosper.

Bizcom Electronic Inc. (Canada) 6901 Creditview Road, Mississauga, ON L5N 8E9 905-286-6900 FAX 905-286-6901 www.bizcom-ca.com Compal notebooks are engineered to the highest standards, evidenced by the OEM roster of clients we serve. Our economies of scale in production ensure a competitively priced system. And our time to market on key platforms, such as Intel Centrino Mobile Technology, coupled with our local supply chain provides resellers a unique business advantage.

Compal Product Roadmap

Certain of the notebook models which we offer to the channel, share a common platform with other international OEM customer(s). Other models are exclusively designed for the channel.

Our product portfolio reflects form-factors and features defined as Thin & Light, Mainstream Performance, Mainstream Value, and Transportable.

Each chassis platform enjoy a long life-cycle, through which we qualify processors of increasing speeds, relative to Intel roadmaps and upgraded core-logic and video chipsets. This approach provides longer sales cycle and lower total cost of product management for the reseller.

Compal Logo Label

All notebook models share a common logo label size - a little thing that is very convenient - which gets affixed to the LCD cover panel. We can refer you to local logo label makers whom already have the tooling for the label made, saving you money.

Bizcom Electronic Inc. (Canada) 6901 Creditview Road, Mississauga, ON L5N 8E9 905-286-6900 FAX 905-286-6901 www.bizcom-ca.com