PART VII - What Do You Think? How Will You Respond?
In this series, “Dressed Up and Ready to Compete - What Do You Think?” we'll look at some "MPS" indicators and market directions so that we can address the questions... or at least be aware of what's taking place.
Just one more sign that the OEM's continue to move into the "Direct Channel" LAKE SUCCESS, N.Y., May 17, 2010 – Working to expand its support for businesses and provide greater levels of service in the North and South Carolina regions, Canon U.S.A., Inc., a leader in advanced digital imaging and software solutions, today announced the acquisition of the assets of Tereck Office Solutions, Inc., based in Durham, North Carolina. It will now be a new, wholly-owned subsidiary of Canon U.S.A....Read More.....
So last week, in Part VI of this series, “What Do You Think; How Will You Respond”, we switched our attention back to HP and their latest moves in this ever evolving MPS landscape. It’s certainly clear that they, as well as others, are out to redefine the market. HP is taking an aggressive stance against Xerox and other rival OEM's competing for “MPS” dominance. There certainly is a debate brewing on the horizon as to which OEM would represent the best “MPS” solution. So what’s your take; what’s your position; where do you stand?
Now we’re seeing some of the latest news about another OEM giant: Canon and their most recent move to buy distribution and own their piece of the MPS space. And hey, can you really blame them? They’re entitled to their share of the market. After all, Xerox certainly took a bite out of their distribution channel. A few years back, when Xerox acquired Global Imaging, they really struck a blow to Canon by slowly transforming one of Canon’s most powerful distribution Channels into a direct to end user, Xerox, independently owned, national dealer network. Talk about a manufacturer blatantly redefining a direct dealer channel market.
So how’s this all shaking out? Well, we know that “the big boys”, Canon, Ricoh, Xerox, Dell, and HP have always had a direct to end user corporate sales division; it’s just more pronounced and out there for all to see. And their criteria for account size and demographic has changed dramatically; pushing down further and further into the independent dealers core channel portfolios.
Now Ricoh has bought up several dealer networks, as an example, and with Xerox’s acquisition and control of the Global Imaging dealer base, this has left Canon in search of new market penetration opportunities. And with the battle for “MPS” control brewing like never before, it seems only fitting that Canon would respond by grabbing up their own share of copy and print dealers. I don’t necessarily like what I’m seeing but then I haven’t really liked a lot of what I’ve seen relative to channel deterioration and the implications for the independents as they struggle to find their point of difference.
All these moves make it clear that the independents must differentiate themselves in the market and compete against these mega giants. Given the dynamics taking place today and the redefining of the "MPS" space, why not take a position, establish your point of difference, and define your market.
You have to take an “MPS” stand; you have to get moving and the time to do that is now. Right now is the time to get serious about your solution; to start implementing your strategies; on your own terms! Don’t sit around hoping that one of these big guys make you part of their solution. Until when, for how long, under what conditions? Make sure that you’re defining your own position in the market; make sure you’re in control; make your “go to market" strategy independent of the OEM’s.
Yes, the MPS space is changing, consolidating, getting redefined...whatever you want to call it and we all need to be aware, positioned and ready to compete; at any level. Guess what, there’s tremendous opportunity out there and you need to take control and grab your piece. Don’t wait for things to change; they will not change in your favor if you don’t take action. While the OEM’s have all come to play, redefining the "Channel" to meet their long term objectives, remember that you are well positioned. Here’s the truth, there is "Strength in Numbers", distributed reach and leveraged expansion? Remember, it’s the Power of the Independent: Local Dealers - National Solutions.
Now we’re seeing some of the latest news about another OEM giant: Canon and their most recent move to buy distribution and own their piece of the MPS space. And hey, can you really blame them? They’re entitled to their share of the market. After all, Xerox certainly took a bite out of their distribution channel. A few years back, when Xerox acquired Global Imaging, they really struck a blow to Canon by slowly transforming one of Canon’s most powerful distribution Channels into a direct to end user, Xerox, independently owned, national dealer network. Talk about a manufacturer blatantly redefining a direct dealer channel market.
So how’s this all shaking out? Well, we know that “the big boys”, Canon, Ricoh, Xerox, Dell, and HP have always had a direct to end user corporate sales division; it’s just more pronounced and out there for all to see. And their criteria for account size and demographic has changed dramatically; pushing down further and further into the independent dealers core channel portfolios.
Now Ricoh has bought up several dealer networks, as an example, and with Xerox’s acquisition and control of the Global Imaging dealer base, this has left Canon in search of new market penetration opportunities. And with the battle for “MPS” control brewing like never before, it seems only fitting that Canon would respond by grabbing up their own share of copy and print dealers. I don’t necessarily like what I’m seeing but then I haven’t really liked a lot of what I’ve seen relative to channel deterioration and the implications for the independents as they struggle to find their point of difference.
All these moves make it clear that the independents must differentiate themselves in the market and compete against these mega giants. Given the dynamics taking place today and the redefining of the "MPS" space, why not take a position, establish your point of difference, and define your market.
You have to take an “MPS” stand; you have to get moving and the time to do that is now. Right now is the time to get serious about your solution; to start implementing your strategies; on your own terms! Don’t sit around hoping that one of these big guys make you part of their solution. Until when, for how long, under what conditions? Make sure that you’re defining your own position in the market; make sure you’re in control; make your “go to market" strategy independent of the OEM’s.
Yes, the MPS space is changing, consolidating, getting redefined...whatever you want to call it and we all need to be aware, positioned and ready to compete; at any level. Guess what, there’s tremendous opportunity out there and you need to take control and grab your piece. Don’t wait for things to change; they will not change in your favor if you don’t take action. While the OEM’s have all come to play, redefining the "Channel" to meet their long term objectives, remember that you are well positioned. Here’s the truth, there is "Strength in Numbers", distributed reach and leveraged expansion? Remember, it’s the Power of the Independent: Local Dealers - National Solutions.
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