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Linksys distribution also goes under review

Linksys distribution also goes under review

Cisco is conducting a review of the channel strategy around its newly acquired Linksys networking products.

Linksys has sub-contracted the management of its channel to its parent company in order to increase channel sales, Cisco director of commercial business, Kip Cole, said.

“Linksys is and will continue to operate as a subsidiary,” he said. “While we have been sub-contracted to manage the Linksys channel, it is a completely separate program to the rest of the Cisco channel.”

Cole said Cisco was conducting reviews with each of Linksys’ current distributors.

Linksys’ small market share in Australia would suggest it requires many new channel initiatives, Cole said.

“In the US, Linksys has a 39 per cent market share,” he said. “In Australia it is less than 1 per cent. That obviously tells you two things — that there is a great opportunity to increase market share and also that we could execute better.”

Any changes are likely to involve some investment in channel marketing.

“This brand could do with a bit of investment,” Cole said.

The products were primarily sold through the retail and direct marketing channels in the US, he said, but so far in Australia these channels had not proven fruitful.

As yet, Cisco was unsure of what kind of restructuring is needed.

“The acquisition was only very recent,” Cole said. “In a month or so we will have a clearer view.”


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