Australian distributor eXeed has taken its first step towards becoming a global player, announcing the opening of eXeed New Zealand on May 27.
Experiencing higher than expected growth since its inception early last year, the HP aggregator recently began eyeing overseas markets, particularly New Zealand and Asia. eXeed decided to launch an assault on the New Zealand market after Kiwi broad-based distributor, Renaissance, abandoned its HP, Compaq and Microsoft distribution arrangements, leaving a gap in the HP New Zealand's supply chain.
According to Michael Bosnar, eXeed's managing director, this window of opportunity, as well as the company's steady performance that was well ahead of targets, were key in eXeed's decision to launch into the New Zealand market.
"Before we enter a new market, we have to identify a need in the market that is not being satisfied," said Bosnar. "Renaissance had about 30 per cent of the HP distribution market share, so when they pulled out, we saw an opportunity. We're looking at taking out 10-15 per cent of the market share in the first 12 months, then 25 per cent in our second year.
"We will be concentrating on the SMEs, system integrators and VARS, while Tech Pacific [New Zealand] will predominately work with high-end resellers."
Bosnar said the new operations will be based upon the Australian business model, although eXeed NZ's product line will be less commercial-centric than eXeed Australia's offering.
"The initial success of eXeed has shown the business model we have developed is both viable and portable," he said. "It can be rolled out very quickly and that gives us the opportunity to expand the model nationally and into other countries in the region when the time is right."
Bosnar said that eXeed is planning to enter the Asian market in the next three months, and expects Singapore will be its first port of call. "Within the next three years, we're hoping to have expanded across five countries. That is our plan. We could probably enter a new country every six months," he said.eXeed's national divisions are supported by holding company, eXeed Global. Bosnar said that he has received strong support from two vice presidents of HP Asia-Pacific that will assist in the company's expansion in the region.