Saturday, July 5, 2008

Dell goes after small, mid-size RP businesses

MANILA, Philippines--Computer maker Dell said it will become more aggressive in the small and medium business (SMB) segment in the Philippines starting this year, executives told reporters here.

Dell defines SMB as companies with fewer than 500 but more than 10 employees--a category that comprises 90 percent of businesses in the country according to government figures.

"In the Philippines, we're very well positioned in the corporate [market] but we're starting to focus on the SMB," said Paul-Henri Ferrand, president of Dell for Asia Pacific and South Asia which includes countries in the Asia Pacific region except for Australia, Japan, South Korea, and China.

Barry Bunyi, Dell Asia Pacific director and country manager for the Philippines, said the computer vendor has appointed local distributors that will help the company penetrate the SMB market.
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Bunyi said Dell controls only about 2 percent of the SMB market in the Philippines.

Dell's presence in the country was beefed up only recently. With the appointment of a country manager, the computer vendor hopes to grow its business locally, as it applies its hybrid strategy of distribution, according to Bunyi.

The hybrid strategy calls for Dell to sell its computers directly or through local distributors in the Philippines.

Growth rates of computers remained strong in the country, the executive said, citing figures from market research firm International Data Corp. (IDC).

Bunyi said the notebook market has seen 45-percent overall growth in terms of units sold in the Philippine market during the first quarter of this year. Desktop computers, on the other hand, still experienced some growth at 10 to 12 percent, he added.

Dell's approach to penetrating the local SMB market involves identifying key partners that will provide the vendor more presence nationwide.

Bunyi said Dell has its sights on selling to SMBs in Metro Manila mostly and several key markets in the rest of the country.

"SMBs lack the resources that would allow them have more choices," Bunyi said.

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