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Product differentiation is back in fashion

By Terence Barter, Dell product manager at Tarsus Technologies

Johannesburg, 17 Jan 2012

If you compare the components prevalent in the vast majority of desktop and notebook computers produced today, there's an alarmingly low level of differentiation present.

That's because over the past decade, companies like Intel, AMD and nVidia have been doing everything they can to lock-down and protect the building blocks they make available to the large computing brands, says Terence Barter, Dell product manager at Tarsus Technologies.

Exacerbating this, he adds, the price-consciousness in the industry has forced both large and small vendors to outsource their manufacturing to huge facilities in the Far East.

"While on the one hand, this has brought an unrivalled level of stability and predictability to the computing industry, it has inadvertently killed off the innovation and differentiation that once made this market such a vibrant one to be involved in," he says.

"It has meant that today, the internal componentry that makes up a modern notebook or desktop, as well as the workmanship that goes into the mix, is almost identical across 90% of the industry's brands," he says.

"And quite frankly, looking at the vast majority of offerings available today, it shows," he says.

However, Barter believes there's still some room for differentiation.

"And it's something that a handful of vendors will continue trading on over the next decade," he says.

Barter says inspiring industrial design - how products look and feel when they're being used - along with devices' build quality and the integration that exists between software and hardware will be key selling points over the coming years.

"The price bands have been carved in stone," he says.

"It's now up to the vendors to see how much they can differentiate the experience of using one of their products without breaking those boundaries."

What makes this exciting, he says, is that these differentiators cannot be compared to one another in a spreadsheet, or tabulated logically.

"It's all about an emotive response and this swings the industry wide open again," he opines.

"If nothing else, this will inject a new sense of opportunity into the industry - something, in my opinion, that's sorely needed," he concludes.

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Tarsus Technologies

With more than 26 years of experience in the ICT industry, Tarsus is the leading value-added distributor in South Africa, specialising in the supply of the world's foremost PC and peripheral hardware brands to the local reseller channel.

Tarsus strives to meet the channel's needs for credit funding, stock availability and efficient logistics, ensuring that resellers are able to deliver the highest quality service to their customers, focus on support and compiling the best overall solutions for their end-user customer base at the lowest possible cost.

The company prides itself on its flexibility, adaptability, knowledge, skills and successful track record combined with an industry-leading ability to manage large roll-outs. These are the reasons Tarsus has consistently been rated as the top distributor in the country by international vendors, resellers and the IT media alike.

With its strong commitment to the South African channel, Tarsus is able to not only make the reseller channel more efficient, but more importantly, it plays a vital role in dramatically reducing the costs of doing business in the local ICT market.

Tarsus distributes a range of products from the world's leading manufacturers, including Acer, APC, Cisco, Dell, Gateway, HP, IBM, Lenovo, Meissner, OKI Printing Solutions and Samsung.

Tarsus' head office is situated in Johannesburg, with branches in Cape Town, KwaZulu-Natal, Port Elizabeth, Bloemfontein and Nelspruit. Tarsus has also extended its footprint into Africa, with branches in Namibia, Botswana and Mauritius.

More information about Tarsus is available at: http://www.tarsus.co.za.

Editorial contacts

Gavin Moffat
Puruma business communications
0860 PURUMA (787 862)
tarsus@puruma.com
Emma Blewitt
Tarsus Technology Group
(+27) 11 531 1000
eblewitt@tarsus.co.za