Seagate spells out Middle East channel changes

Seagate’s Middle East management team has outlined changes to the hard disk drive (HDD) vendor giant’s channel structure in the region following on from the purchase of Maxtor. A total of six distributors will now sell the entire portfolio of Seagate and Maxtor branded products in the Middle East.

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By  Stuart Wilson Published  September 28, 2006

Seagate’s Middle East management team has outlined changes to the hard disk drive (HDD) vendor giant’s channel structure in the region following on from the purchase of Maxtor. A total of six distributors will now sell the entire portfolio of Seagate and Maxtor branded products in the Middle East. Gulfem Cakmakci, senior channel sales manager Eastern Europe, Middle East and Africa at Seagate, said: “In terms of distributors there will be six in the [Middle East] region selling both the Seagate and Maxtor product lines. These are Asbis, eSys, FDC, Logicom, Mindware and Tech Data. MAS in Egypt, ESAP in Saudi Arabia and Almasa will sell Maxtor lines only while both Delta and Jarir will operate as retail distributors.” “We have also worked hard behind the scenes on the brand positioning for the Maxtor and Seagate product lines that we now carry. Seagate is positioned as a premium brand with leading edge technologies. For Maxtor, there will be more of an emphasis on pursuing the volume market,” added Cakmakci. “We will have a dual brand strategy for the channel where Maxtor is more of a mainstream, entry level volume product. For this sector of the market, where there is an emphasis on volume deals, it is important to make sure that we have enough channel coverage,” she explained. “Almasa is a very strong player in the volume space and that is why we decided it was best for them to focus purely on Maxtor,” Cakmakci continued. “In terms of the credit lines that distributors previously held separately for Maxtor and Seagate, our finance department is currently working with partners on this point.” Seagate has also confirmed that it will close down the office that Maxtor had set up in Dubai. “We have kept on some Maxtor employees and have taken decisions regarding offices,” explained Cakmakci. “The Dubai office is closing down. At Seagate we believe that it is more important to invest in people rather than physical offices and we have a team of people working across the region meeting all our partners on a regular basis.” The newly enlarged Seagate is looking to grab at least half of the total addressable market for HDDs in the region, which Cakmakci estimates at approximately 4 million units per annum. “We actually have a BRICME strategy inside Seagate, which widens the scope of emphasis on fast growing markets beyond Brazil, Russia, India and China (BRIC) to include the Middle East (ME) as well,” Cakmakci concluded.

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