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Predictions on IT distribution market in Romania

The local IT distribution market will undergo a speedy consolidation process that will lead to a diminution of the number of players and to some of these players turning to some business niches, John Cusa, executive manager of Tornado Sistems, tells daily Business Standard.

He makes it clear that, in the next three years, the IT market will get consolidated around two or three mega-distributors deriving from a process of acquisitions and mergers. These big distributors will be used by distribution companies specialized in niche products.

A number of changes can be noticed on the market, which may grow in ampleness in the years to come. For instance, some suppliers started selling directly to retailers or to the final customer and thus became competitors of the distributors in some cases.

The competition also became stiffer and stiffer and customers often buy on the Internet or from other countries.

The negotiating power of the users has also increased. 'If until not long ago a distributor was also a consultant, helping the customer decide on what to buy, now the customer is much more informed, a fact that leads to the increase in the negotiating power,' says Cusa.

Then, referring to his own company, the Tornado Sistems representative says that his main project aims at increasing profitableness. 'We want to increase sales by at least 50 percent per employee as against the level obtained so far. As for the profit margin, we plan it to come up to 2.5-3 percent in 2009 and have already started restructuring the product portfolio,' says Cusa.

Thus, the product portfolio will focus on network and communications equipment, servers, workstations, software products, printing and electricity supply solutions, backed by services.

A short time ago Tornado Sistems informed that it had invested 200,000 dollars (almost 158,000 euros) in a showroom meant to promote the solutions and products of the American company Cisco Systems, the biggest producer of network equipment in the world.

In the fiscal year to come to an end in June 2009, Tornado estimates it will register 221 million dollars (about 142 million euros) in turnover, up by 30 percent as against the 170 million dollars (circa 130 million euros) predicted for the previous fiscal year, which ended in June 2008.

 

Sursa: http://www.rompress.ro

Tags: market distribution

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