IBM is known and established within the realm of global information and communications technology. That is a given.
What is generally misinterpreted by the local market, however, is the strength and depth of product, level of service and delivery and broad acceptance associated with the company.
Shane Kennedy, general manager of the recently established South African-based IBM division at Annex Distribution, is passionate in his quest to address common misperceptions about the company, its operation, focus and direction.
His chief aim: to enforce, at the very least, a drastic shift in popular mindset and secure position for IBM South Africa at the forefront of effective solution provision.
"In terms of technology and from an Annex Distribution strategy, the main objective at this point is to be involved with a world leading brand that has a lot of reach and market presence in Africa. We also need to take that brand to new segments that traditional dealers and distributors have yet to reach," says Kennedy.
A typical problem with the IBM branding, especially within the Africa region, has been the perception that it caters exclusively for the larger operator. From a brand image perspective, the level of misperception has certainly hurt the business, explains Kennedy, and now is the time to give the market a serious reality check.
Annex`s IBM division means to chart new waters and explore opportunities in fresh areas of business. The company will leverage off its success within the high-end corporate environment, continue to partner with tier-one service providers and focus on the mass market.
Dispelling rumours
Simultaneously the objective is to counter the impression that the company distributes an `ivory-tower` based product that is unattainable to the average person.
"This is serious misconception created in the market by other producers pitching their product cheaper than IBM. Hence, the product`s inherent values of safety, security and quality are not brought out into the market. Obviously, It is a perception that is accentuated by our opposition," adds Kennedy.
He points to the printer and server side of the business to illustrate. "We have access to a wide range from entry-level to blade servers and this widens our appeal across the spectrum of business. There are very few operations out there that do not utilise an IT infrastructure that incorporates a server. The company also stocks complete printer solutions, an aspect not readily known within the market. The idea that IBM is too large is totally inaccurate."
"IBM has actually evolved from a product-based company into a technology-based company. As much as IBM is focused on PCs, their real moneymaker is the technology, no longer the products," says Kennedy.
Mobilising with force
One of the primary market segments the IBM division plans to focus on is that of notebooks.
"In particular an area of the market that is looking to buy notebooks instead of PCs. Corporates will always purchase PCs from a cost perspective and a barrier to entry or replacement costs - so, yes we will always have PCs and monitors. But our focus is to take mobility to the masses. There are people out there that want to own a quality notebook and do not want to invest in a clone or a local branded notebook, who want the three-year warranty and quality inherent in the product," says Kennedy.
While IBM believes there is a definite demand in the market, Kennedy readily admits that the company currently does not enjoy a local retail presence, thus limiting access to product for the average person.
"Our intention is to partner with certain independent retailers and dealers that service SME businesses and take IBM through to them," explains Kennedy.
Challenges in local market
Kennedy acknowledges the most pressing task ahead is raising the profile of the company. He argues that IBM has developed a strong product and the challenge is to reflect this strength to the company`s target market.
"We need to get IBM brand at the lead again among consumers and corporates and even among those who have not had exposure to IBM before. People no longer understand or appreciate what the company is all about and what it offers," adds Kennedy.
Expansion plans
Africa lies at the core of what the new division aims to achieve in the foreseeable future. According to Kennedy, the region is highly brand-conscious and extremely loyal.
He says that from a supply chain perspective, there are a lot of resellers who would like to sell IBM. The strategy is to address the issue of availability with a fresh approach to stocking and timing.
"We will with caution proceed to carry certain items the market requires and we will do this over a period of time. We will base what we do firstly on our partners in the market, secondly on product and then on pricing," he says.
Armed with this strategy and reinforced by definite policy to establish a firm footing in Africa, Kennedy and his team represent a strategic part of Annex Distribution and the Sahara Group.
This is a tactical decision that plays out positively on all fronts for the new division, Annex Distribution and Sahara.
"The IBM division adds depth to our current line card and strengthens us as far as our market reach is concerned," comments Bill Gradwell, GM at Annex Distribution. "We are proud to be in a position to help distinguish the profile of IBM and its offering. The local market will certainly benefit in terms of the variety of product available and enhanced levels of service."
"IBM was placed here because of the relationships that Annex already has with the balance of the market and to avoid conflict with the Sahara brand, which is already gaining market share. The Sahara Group remains focused on its brand and its product set, and this will continue to evolve and grow. Annex is focused more on specific component brands as well as brands like Fujitsu Siemens Computers and IBM, penetrating the market and appealing to separate market - not only from Sahara, but from other distributors," adds Kennedy.
"If one looks at what is currently out there on offer, I do not believe that anyone has done IBM justice. My personal goal is to elevate IBM, within Annex, as the preferred partner to the resellers and service providers and be the provider of choice."
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Gauteng-based Annex Distribution is a leading distributor of building block solutions to sub-Saharan Africa.
Being the first Intel distributor in SA, the company features a line card of recognised brand names including Fujitsu Siemens Computers, BenQ, MSI, Prolink, Hynix, Creative Labs Matrox, AMD and Eizo.
Through established partnerships with international specialist suppliers, Annex is positioned to provide value-add service and support for clients to ensure they remain in the forefront of IT requirements and e-commerce.
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