Find Your Company's Position

I have a question for all you VARs out there: How much time do you spend thinking about and honing your company's position? Could someone tell you apart from a neighboring VAR or one across the country based on the description of your company that you have on your Web site? No matter how small or large you are, this is an incredibly important question to address. Generally speaking, VARs do not spend nearly enough time on the subtleties of their position. Some of that comes from the fact that VARs and integrators are poor marketers. They are terrific at selling technology, but marketing comes about as naturally to a VAR as golf does to Charles Barkley. So what can you do? Well, there are two simple steps. First, take a hard look at how some of today's leading solution providers position their operations. Second, don't be cheap. Hire a marketing director or outsource the work to someone on a contractual basis.

If you don't think the big boys spend a great deal of time carefully positioning their companies, think again. At a recent investor conference held by investment banker Raymond James & Associates Inc. (CMP Channel was the media sponsor), top executives of today's leading distribution and solution provider organizations pitched their companies to investors. It is such an important gathering that nearly all of the major publicly held channel players send their top executives. The most interesting part of the day is the back-to-back presentations made by competing CEOs and CFOs who are looking for any competitive edge they can get with investors.

When John Edwardson, CEO of now-privately held CDW—and arguably the most powerful solution provider in the market today—stands before investors, he makes sure everyone in the room understands that he oversees the largest direct marketer in the industry today. And even though CDW generates some $8 billion in sales, his message focuses on growth and market share—especially around CDW's professional services business, the result of its recent acquisition of Berbee. It's a clear, strong message.

Synnex is the industry's third-largest distributor behind giants Ingram Micro and Tech Data, so it has an especially difficult task of positioning itself. That is why Synnex's chief financial officer tells investors he counts the beans for a business process services company, not a wholesaler of technology. It is a great line.

Bob Dutkowski, CEO of Tech Data, the No. 2 distributor, stresses his company's position in the SMB market, especially how its sales team is structured to support such clients. He also weaves in a critical message that Tech Data will not grow market share at the expense of profits. Then he follows that up by talking about his company's investments in leading-edge technology and innovative joint ventures.

The executives of PCMall have one of the toughest tasks of all. They must operate in the shadow of CDW yet differentiate their outfit. So here is how Chairman Frank Khulusi and Executive Vice President Kristin Rogers spin it: They operate DMR 2.0, addressing both the volume and value sides of the business. It is pure poetry.

There are two other executives with powerful pitches. First is Ingram CEO Greg Spierkel, who positions his company as a global player. He notes that 35 percent of Ingram's business is coming from the U.S. today and he is focused on growth through diversification. Think of Ingram as broad-based, not broad-lined. And finally there is Richard Fennessy, CEO of Insight Enterprises, who states simply that he operates the only global VAR in the market today.

So are you still satisfied with your position?

For more on how other leaders position their companies, read my online column. And then send me an e-mail telling me how you position your business.

Robert C. DeMarzo (rdemarzo@cmp.com) is vice president and editorial director of CMP Channel.

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