PrintIT Reseller - issue 49

PRINT IT RESELLER.UK 41 VOX POP As businesses get larger it can be more difficult to be responsive and mid merger or acquisition it’s easy to take your eye off the external market as you become internally focused on integration issues PITR: Will the emergence of ‘super dealers’ and ‘powerhouse’ OEMs positively or negatively impact on business growth? including declining margins, digital transformation, IT security and emerging technologies such as AI and IoT. While this is prompting significant investment in both OEM and channel partner business models, it is also changing how manufacturers and channel partners work together. “The expectations of end-users are also evolving. People are increasingly gravitating toward resellers that demonstrate holistic strategies focused on services and solutions, rather than specific product lines. This requires a much more consultative, customer-centric approach, rather than thinking purely in terms of transactional sales. It’s important that those operating in the channel are able to diversify their business offerings and sales approaches in order to meet these expectations. “This raises the question of whether a business has the appetite to drive this level of transformation from within. While many do, others are choosing to sell up instead, taking advantage of the opportunities that this presents. More often than not, the mergers and acquisitions we see in the channel present a mutually beneficial scenario – especially for channel players seeking the ability to scale. “Conversely, OEM consolidations – from the outside at least – all seem to have entrenched the combined organisations further into the print business. Naturally such industry acquisitions create significant cost reduction opportunities by eliminating duplicate costs. Expanded print based product ranges can also have significant benefits in some cases. “However, none of this truly goes beyond print and certainly does little or nothing for office equipment resellers who need help in their digital transformation journey. The OEMs best placed to provide this are those who both understand the challenges of a reseller’s current business model and have the capability and breadth of portfolio to coach them through this.” Steve Hawkins: “I think on the whole it will be positive. The consolidation of the channel offers both smaller and larger partners different opportunities on a whole variety of levels. “Those channel partners that focus on consolidating to enhance their strength and, critically, on enhancing the offerings and service delivery to the end point customer – should thrive. “The consolidation of the OEMs and the inevitable requirement for them to be more channel centric, will bring opportunities for the channel partners to work closer, deeper and in a more strategic manner with a smaller group of OEMs. “The dynamic of a smaller group of key channel providers and a smaller group of OEMs must bring a competition level that sharpens up the behaviour of the OEMs and channel providers, which can only be a good thing.” Sharon McNee: “Larger dealers and dealer groups are subsuming the smaller players. The strongest, most adaptable, IT savvy dealers are the key targets for the print vendors. Print vendors are in channel grab mode as they look to maintain, grow and enhance their channel partner base to tap into the market for print related services in the SMB space as the market for enterprise print services subsides. The market will become more competitive as players strive to differentiate in a declining market.” Phil Jones: “Much depends on what side of the fence you sit. As businesses get larger it can be more difficult to be responsive and mid merger or acquisition it’s easy to take your eye off the external market as you become internally focused on integration issues. “It’s easy to lose your customers when this happens so we often see revenue shift from one customer or channel to another. On the plus side, stronger businesses, big and small have more predictability, investment and resources to invest in new portfolio offerings which can lead to expansion. Some might argue it limits choice with fewer players however we are in a free market and the climate is still very competitive, so I’m confident that buyers still hold the influence even with fewer suppliers in a smaller market.” Michael Burke: “The impact of this new generation of ‘mega dealers’ will be to create a split in the market as they start to present a significant challenge to OEMs that have traditionally dealt direct with the largest accounts. These new organisations have the breadth, skills and coverage to compete directly with OEMs which have had it their own way for too long. Of course, as these ‘mega dealers’ turn their attention to the larger accounts, this will then open up more opportunities for smaller dealers to go after the mid and low end markets (where the now ‘mega dealers’ used to operate).” Nigel Allen: “As IT services become more of a standard offering, the competition will increase as traditional print vendors and OEMs encroach on managed service providers and VAR markets. Those partners who understand that excellent service levels are key, will continue to grow and take market share at the expense of a more transactional sales approach.” Clive Hamilton: “My personal feeling is that super dealers have to spend much more time on divestments and integration of businesses, systems and customers which naturally will slow down organic Continued... Phil Jones Nigel Allen Michael Burke