About Dicker Data
Dicker Data is an Australian and New Zealand-based company and it is an Australian-owned company providing services in both the countries and is listed in ASX IT distributor. Dicker Data was founded in 1978 and is representing global tier-one brands in a wide range. The company’s main core value is in delivering tailored solutions to unique sellers across two countries and the count of resellers is over seven thousand. In the year 2014 dicker data expand its Market-Leading Position in the country by acquiring with its fellow distributor, Express data. After the integration of both the brands the revenues of Dicker Data have expanded to 1.2 billion dollars with a team consisting of more than 350 dedicated staff who have worked day and night and brought success to the company and are still growing. With an option of an expert-based team, Dicker Data provides solutions and pieces of equipment to both vendors and reseller partners with an option of go-to-market backed up by the professional team. Dicker Data’s main mission and value are to provide overall IT solutions by enabling, educating, and inspiring the resellers in order to achieve their full potential by providing top-notch service with unparalleled technology and logistics. The product line-up of dicker data includes the wide diversification of products starting from computer hardware, software, and other related products and cloud securities to other resellers consisting of top brands like APC. Dell, Cisco, Lenovo, and many more. Dicker Data has also started its financial service by providing unique solutions regarding optimization of cash flows and building up its own infrastructure of MSP and also provided its resellers and trusted partners with a bundle of all hardware, software, and cloud service and subscriptions into one invoice which has to be paid monthly. Dicker Data has also decided to adopt the modern hybrid work models pinned by 5G service and the company want to accelerate the digital transformation and want to evolve the hybrid workforce in the coming years and will emphasize security by driving more smarter, faster, and collaborative technology in order to provide the better solution to its trusted partners. (Data 2022).
Stakeholders Engagement Planning
The stakeholders of Dicker data consist of its directors and other IT solutions groups while most of the shares of the company are owned by the insider of the organization. The CEO of the company David Dicker is the largest shareholder of the company with around 34% of the stake. The Vanguard Group Inc and the Certane Ct Pty Ltd are the outside firms that have shown interest in the shares and performance of the Dicker Data. The Certane is the IT solutions company holding shares in the Dicker Data. This financial IT solution company has also provided clients with operations-based solutions and custody and corporate based solutions to its clients. Apart from that an investment company called Vanguard group has also had a stake in Dicker Data and holds a small amount of share the company. The Vanguard Group is one of the largest investing-based company with offering mutual funds, brokerage services, and many more to its clients. (Goodpaster 2016).
Dicker Data’s Core Values and Offerings
As stakeholders planning is very much important in engaging stakeholders in the company. The consumers and other partners showing interest in the company can provide profit to the organization. The director of the organization of Dicker Data and CEO David dicker is the main stakeholder and shareholder of the company. The planning of the internal stakeholder would have better communication with the director of the company and his choices should be managed quickly in order to build a better relationship with the stakeholder. (Kujala et al. 2022). The CEO has a lot of interest in the company looking at the shares he has invested within the company so it is important for the management to keep him satisfied.
The second stakeholder of the company in terms of external stakeholder is Certane Cty Pty ltd is a solution-based financial firm showing interest in the performance of Dicker Data and buying and investing stakes in the company. Consistent performance of the company has put trust in investing in the company shares by Certane. The engagement planning of the Dicker data would be to communicate with the stakeholder in terms of information sharing and regarding the future scope of the company. The solution should be provided by planning and project management can increase the chance of stake of Certane in Dicker Data. (Andriof and Waddock 2017). Projects should be completed on time with good performance records and negotiation with stakeholders regarding problem-solving and proper conveying of messages at regular intervals will help in increasing the interest of Certane towards Dicker Data. Open forums and user panels should be engaged to provide formal information regarding the goals of the company can be helpful in building a solid relationship with Certane.
Dicker Data’s consistent performance over past years has given interest to many companies to invest in the company. With total revenue generated to two thousand million dollars in the last fiscal year, the revenue of the company has increased up to 12.8%. Vanguard Group has shown interest in investing in Dicker Data as a financial institution and firm providing mutual funds and brokerage, vanguard group has low power and high interest in Dicker Data. These can be a focus group for the Dicker Data as these stakeholders should be well informed and should be engaged regularly for a better outcome in the future. The deliberate meetings should be conducted with external stakeholders like vanguard for a better opportunity of merging and working together for better profitability in the future. Vanguard Group is the third-largest shareholder company of Dicker Data and can be a key sounding board for the company if well engaged and relationship can be properly driven. Conferences should be called with the vanguard group as these acquisitions can bring more productivity to the organization. (Ritter and Lettl 2018).
The porter five strategies model was introduced in order to sustain itself in the market by producing products in a certain category divided into five factors that the company applies in order to get ahead of the competitors. Porter’s five strategies model has given new ideas and market capturing techniques to the companies. (Greckhamer and Gur 2021). Dicker Data has various product ranges and diversification. This diversification ranges from hardware and software products to cloud and financial services. The starting of remote work and online education provided a massive uptick in technology consumption. In providing network solution products like wireless Wi-Fi and ethernet switches for best connectivity in the hardware segment of the company. (Omsa, Abdullah and Jamali 2017). Dicker Data has applied the best cost provider strategy of porter with the diversification of products in order to meet the need of the clients. The new range of networks was introduced by Dicker Data that is Juniper. Juniper mist network is easily managed and is cost-effective. Actionable insight of network with AI enables automation and elasticity of the cloud-based service has made Juniper 1 the best effective network provided to the clients in order to get better WIFI coverage and network for working seamlessly. Juniper networks wireless service of Dicker Data has provided a virtual network of AI-driven operations that resolve issues of the users fastly before noticing and also deliver secure wired delivering connectivity. (Friis, Holmgren and Eskildsen 2016).
Dicker Data’s Financial Services
Dicker Data has also differentiated in product and used one of the strategies that are differentiation from providing hardware peripherals of the computer to the reseller from industry-leading vendors like Belkin, Anker, Bluepeak and many more has provided with differentiation in the product range from price for empowering the need of the clients anytime and anywhere. Dicker data provides a wide range of USB cables and adapters including HDMI ports to the partners from these vendors. The main strategy of Dicker Data is to provide an all-around solution by providing diffrentiation of products in one channel and reducing cost and time. Dicker Data broad differentiation strategy has helped the company in joint many consumers and partners and has helped the company to earn revenue more than that of last year is constantly performing in the Australian and New Zealand market. This strategy has helped Dicker Data in reducing price competition by collaborating with different vendors for every product category lowering down the manufacturing cost and providing unique products to its customers. (Hagiu and Wright 2020). The quality of the product due broad differentiation strategy has maintained by the company in order to gain the partners loyalty as according to last five years this company is constantly increasing sales and revenues greater than its previous years and this loyal based customer has been acquired by the company through performance and quality of the products provided to the resellers. The strategy has also helped the company in increasing the profit margin as in each USB variations and products company is operating providing all requirements of the partners at one shop ordering online without going for different places helps Dicker Data to establish its business in dominant form. (West, Ford and Ibrahim 2015).
Figure 1: Porter”s Five Generic Competitive Strategies ( source: BSR 2022).
In 2020 Dicker Data has successfully announced its strategic alliance with Veeam Software and this partnership has enabled the team of Dicker Data to offer new solutions built on new technologies for SMB and mid-market customers segments. Veeam software is known for cloud data management systems providing solutions to the client as this company is leading in data backup and recovery management software for a physical, virtual, and multi-cloud environment. Veeam technologies with one single platform provide its clients to enable and manage reliable recovery and backup and replications of all applications and also provide security to the clients in order to prevent data breaching and stealing. In order to support better business outcomes, Veeam has available its platform as a complete solution for its users in terms of modernizing the backup and recovery in order to improve the overall performance of the cloud management system and solution. Veeam’s partnership with Dicker Data has opened new growth and development possibiliti8es for the company as this will strengthen the relationship between the two countries and will also streamline the way to sell its solutions to the Australian market. The general manager of Dicker Data Pennie Stevens stated that the company is thrilled in working with Veeam as this will open up new opportunities for their resellers and will collaboratively as making Veeam their alliance partners. (Tanriverdi and Du 2020).
Stakeholders of Dicker Data
In New Zealand, Exeed is the second-largest solutions software company providing a wide range of products to its partners and clients and has boosted the revenue of NZD 380 million has been acquired by Dicker Data at a landmark deal of A$68 million and this deal has shaken the landscape of New Zealand. In taking control of the business of Auckland Dicker Data has strategized its position in the New Zealand market. The successful deal opened doors for the company to allow the ownership of portfolio by keeping Apple, HP, and Microsoft across all retail and commercial sectors and has also decided to distribute its solution to local distributorships with Motorola, Ruckus, and Webroot in the country. The CEO of Dicker Data has clarified that the company is very happing the acquisition with Exeed and the transaction will put the company in a strong position in New Zealand with providing a platform of two numbers in providing solutions to the vendors. (Brooks, Chen and Zeng 2018). The combination of this acquisition will bring performance and revenues profitability within the company. The New Zealand business acquired by Dicker Data will be employing 119 employees and providing employment to New Zealand by acquiring 95 employees from the home country. The competitive advantage will bring integrity to Dicker Data and all the seller partners are being assured that their business is the topmost priority for Dicker Data and Exeed and will bring more solutions to the business and provide valuable development and innovation in the IT solutions sector. (Henderson 2022).
Talking about the partnership in 2020 of Dicker Data, the company has expanded its partnership with one of the giants in computer software solutions called Microsoft in its cloud computing business called Microsoft cloud and has launched a new business unit called Partner-to-Partner portal and a dedicated service marketing called Amplify. The move was decided as year on year the company was earning profit from its cloud business and has an annual revenue of hundred Australian dollars and is increasing at a rate of 25% per year. The company has announced that this strategic deal will bring innovation and development in the cloud computing solution into the market and will increase the relationship with Microsoft by providing better offerings to the partners of the company. According to the company has always thrived for digitalization and has brought transformation in the digital field from the last five years. The P2P portal of Microsoft will help the company partners to expand partnerships and will provide partners of Dicker Data with a directory where partners can connect with other resellers for opportunities on partnerships. As prior to that the Microsoft partners will also have a marketing platform called amplify which will provide the resellers with assistance on marketing and will provide information about the go-to-market strategies. (ChannelLife 2022).
Figure: Corporate level strategies ( Source: Griffin 2022).
- The first recommendation would be to expand the business of Dicker Date to other regions of the globe. As the company suggests it is providing and earning successful business in Australia and New Zealand the further expansion of the business will boost the economy of the company as the brand has provided its name in the market with proper acquisition and merging with top brands. Dicker Data solution should be important for other regions providing a variety of solutions in the market to its resellers from one single platform.
- The second recommendation would be to increase the number of new customers in online channels. From the past few years company has invested a vast sum of money in developing its online channel. In the next few years in the market, the company can leverage this opportunity in developing new ideas and innovation to provide the quickest solution to its customers and can also serve its partners using big data analytics used by many other big firms.
- The third recommendation would be to lower down the transportation cost by acquiring more logistics vendors in order to supply the products of Dicker Data to their partners in a more flexible manner. The lowering down of shipping costs will bring profitability to the company and will also increase the sales of the company by increasing the market share value of the company. A new skilled force is required by the company in order to expand its market business and proper training and development will ensure the sustainability of the company for the long-run market scenario.
References
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Brooks, C., Chen, Z. and Zeng, Y., 2018. Institutional cross-ownership and corporate strategy: The case of mergers and acquisitions. Journal of Corporate Finance, 48, pp.187-216.
BSR, 2022. Five-Step Approach to Stakeholder Engagement | Reports | BSR. [online] Bsr.org. Available at: <https://www.bsr.org/en/our-insights/report-view/stakeholder-engagement-five-step-approach-toolkit> [Accessed 16 January 2022].
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