While the PC industry has been through no small amount of turmoil over the past few years with many vendors dropping their indirect sales approach, cutting out their reseller channel in favour of dealing directly with clients, IBM`s channel strategy is going strong. 2003 saw the company halve the amount of direct business it conducts as it boosts its channel presence.
"IBM`s PC division adopted a hybrid sales approach a few years ago, using both direct and indirect models as we took our solutions to market," says Johnathene Beyers, Personal Computing Division executive, IBM SA. "Our direct PC trading was a large part of the business, reaching its peak in 2002."
However, Beyers explains that IBM is a channel-oriented company and has a long history of working with partners in all spheres of operation. The company has therefore introduced a new global channel programme, PartnerWorld, dedicated to building the skills base and competence of its channel. As a result of the company`s refocused channel strategy, 2003 witnessed half the direct business move to the channel.
"While a direct model can work for a limited time, companies opting for this business strategy find themselves continually having to roll-out new products in new fields of the operation," Beyers adds. "IBM`s goal is to ensure we, along with our partners, offer a long-term solution that incorporates far more than merely selling PCs and laptops."
This thinking has resulted in the launch of a simplified line of products from PCD, designed to meet the real needs of customers today. All PCD products are now designed under the auspices of IBM`s ThinkVantage strategy.
"ThinkVantage is a set of technologies we have incorporated into IBM PCs and laptops to lower the total lifetime cost of owning and running a computer," explains Beyers. "A simplified line-up, together with these technologies results in lower production costs and therefore a lower purchase price, but also a lower total cost of ownership over the life of the products."
IBM`s channel strategy is stronger than ever. "The tough economic conditions have shown us that working with partners and not neglecting them in favour of short-term profits will deliver a greater benefit to IBM, its partners and the customer in the long term," concludes Beyers.
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IBM is the world`s largest information technology company, with more than 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key business partners, IBM offers a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of the new era of e-business. For more information about IBM, visit http://www.ibm.com.
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