How much product you can sell depends on a few factors. Do people need it and how much does it cost are important, but once a product line has matured and there is a definite, on-going need, then something else becomes very significant. Distribution. KitGuru dons some dungarees and considers logistics.
Looking at all the companies that create memory modules and ship them, Kingston is by far and away the number one. But who’s in number 2 spot? According to an iSuppli report in May 2010, it’s AData. They have been around for a while and their customer list includes Asus and Sony, but end users have only recently come into contact with the re-vamped brand in the UK.Led in the region by Kingston and Samsung old-boy John Habington, the company has its sights firmly set on expansion.
Question is, how can you increase your market share when things are so competitive.
Well, AData’s answer seems to be “Get signed by one of the world’s largest distributors and let them take care of customer acquisition”.
Avnet’s Senior Vice President, Sukh Rayat, commented, “Avnet is committed to generating growth opportunities for its partners”.
So where is Rayat aiming and with which product ranges? He seemed to be clear enough, “AData’s DRAM/Flash memory, SSD and external hard drive solutions will help us further meet the unique needs of OEMs and system developers in EMEA”.
AData will be hoping that while Rayat’s team are plying customers with the companies “…extensive portfolio of complementary off-the-shelf components, and distribution & integration services…”.
AData’s John Habington believes that the marriage to Avnet is “…a great match for a quality-driven manufacturer like AData”.
“Avnet commands a strong reputation as a leading distributor of computing products”, he added. “This partnership will strengthen our market penetration and lead to both improved service and brand recognition in these key regions”.
KitGuru says: So, there you have it. Having shaken hands on the new deal, both sides seem very happy with the way it’s gone. Best result possible? Increased pressure on the market leaders will keep them on their toes. Which is good for the KitGuru reader.
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