Following the launch of Itec/Konica`s franchise distribution venture which is aimed at increasing the company current 9% market share of the copier/printer market to 15 % over the next three years, Cape Town is the first branch to take up the offer by becoming a wholly-owned franchised operation.
According to Jacques Duyver, chief executive officer of the group, Itec/Konica is currently in the process of selling out its shareholding in incumbent dealers and expects to complete the roll out of the new franchise network by the end of 2001.
"The franchise model will allow us to attack the market aggressively by tapping into the inherent drive of owner managers and allow us to continue the success of the past three years which has seen Itec/Konica grow its share of the copier market from a minimal 1% to 9% thus outstripping the market as a whole where competitors have either lost or maintained market share," he said.
Itec/Konica, the sole distributor of Konica copier printers, Oki faxes & Itec PC`s in South Africa and the country`s first office automation company to expand into network service and solution provision intends to establish a network of approximately one hundred franchise operations around the country that will be wholly-owned by individual entrepreneurs franchised to distribute and support the entire Itec/Konica product range as well as to offer network service and support on all installations.
"Where necessary, Itec/Konica will offer comprehensive marketing and training support and will continue to monitor the service standards set by the international parent companies on each of the brands," said Duyver.
Duyver also believes that this franchise distribution network will add further impetus to the company`s vision. During the past year Itec has changed its positioning from a product supplier to a total document solutions provider in anticipation of the swing to networked digital copiers and multifunctional machines.
"This follows international trends where stand alone copiers, faxes and printers have made way for digital copiers that combine functions such as copying, faxing, printing and scanning and are integrated into the computer network or LAN/WAN in office environments. South Africa has not lagged behind. In the last three years sales figure on digital copiers have grown from between less than 5% to around 65%. This growth is reflected in our own figures where 85% of new sales are for digital copiers," Duyver said.
"Ideally, all the machines on an office network should be maintained by a single support service with a skills base across all products instead of, as is currently, the case, various operators servicing stand-alone machines that could be connected together. In providing a comprehensive range of products, network support and holistic office automation solutions, Itec - with the support of a strong franchise network - is positioning itself firmly at the forefront of this growth area," Duyver added.
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