In early 1997, Compaq, the world's largest supplier of personal computers (PCs), faced a growing challenge from direct-marketing rival Dell Computers. This challenge raised two important questions for Compaq CEO Eckhard Pfeiffer. First, should Compaq attack Dell directly by expanding sales through direct marketing channels: Second, should Pfeiffer attempt to improve channel support for Compaq products by launching a joint-manufacturing program with leading distributors?