Ingram Micro reveals strategy behind European shake-up

Ingram Micro reveals strategy behind European shake-up

Ingram Micro’s UK head has revealed the thinking behind its European restructuring.

Speaking to Mobile, Brent McCarty, VP & chief country executive at Ingram Micro UK & Ireland,
explained that the change in strategy was part of plans to adopt one go-to market approach. He said the distributor has shifted its global focus to one that is more targeted to individual countries and regions.

What’s going on in distie-land?

Ingram Micro’s global strategy

He said: ‘We have a global strategy but in different countries we have different levels of market share. When we looked at regions we had an almost prescriptive model, but that’s not always applicable to certain countries, so we tried to have one go-to market strategy. That’s the reason why we restructured – we de-layered a little bit and took some costs out of the business that were overlapping to be a bit more nimble and agile.

‘We’ve been integrating mobility into core business, and we don’t want to be different business units, so we’re trying to capitalise on the broader customer base that Ingram has. We’re doubling down on mobile, but this is a journey that we’re on. Typically, we’ve been selling hardware products and we want to continue to do that, but also build an ecosystem of capabilities around that so we can deliver what we think is of significantly more value.’

Bringing Ingram's services together

The distributor has completed a number of acquisitions this year to boost its life cycle capabilities – investing in warranties, insurance and repairs to obtain a complete range of services. Brent claims it has the complete package of services to maintain the value of a mobile device, focusing now on bringing it all together.

Ingram Micro goes on acquisition spree

He said: ‘We’ve almost got everything now – there’s repairs, warranties, insurance, distribution, forward and reserves logistics. So the value proposition is completely baked and now it’s all about putting it all together – we have the capabilities but it’s about marrying them up to make sure we can deliver.

‘Just selling tech products and mobility has been a good foundational business, but the margins are thin. Carriers are more focused on network time and the manufacturers. Samsung and Apple dominate the market but when you’re only selling hardware it’s very difficult to have a proposition that differentiates, and it’s a price-oriented discussion.

‘We can lead with the services-type portfolio then automatically sell the product on. There’s a very clear push to get people on the services, and there’s an accelerated rate where hardware is being swapped out, and that’s a big opportunity for distribution.’

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