CAIRO: With more than a quarter century of industry expertise in digital storage, Seagate is turning a stiff one eye on the Middle East North Africa (MENA) region with a business model that seeks to almost double its market share within the next year.
“At Seagate, our growth strategy gives particular attention to BRICME markets: Brazil, Russia, India, China and the Middle East, said Christian Assaf, Seagate’s channel manager for the MENA region. “American and [Western] European markets are getting more and more saturated. They are still growing but at a slow rate, unlike BRICME markets where growth is [in double digits].
Named 2006 Company of the Year by Forbes Magazine, Seagate has become a leader in the design and manufacture of hard disc drives, providing products for a wide-range of enterprise, desktop, mobile computing, and consumer electronics applications.
By redefining storage as a trendy, high-growth, and high-return business, Seagate managed to soar its revenues to almost $11.4 billion in 2007, up from $7.5 billion in 2005. Its $913 million net income for the fiscal year 2007 is almost three times what its two nearest competitors earned, combined.
Still, Seagate is constantly on the hunt for more market opportunities. “We see huge potential growth in the MENA region, particularly in Egypt, Saudi Arabia, and Dubai, Assaf explained.
Being the biggest country in terms of population in the entire region, Egypt has become the main focus for Seagate’s growth strategy. With an under-penetrated market, the current pick up on technology, and recent government tenders – such as the PC for Every Home initiative – Seagate is confident it can increase its market share from the current 29 percent to 40 percent within the next six months.
“Recent [records] prove that Egypt has become a favorable destination for foreign investment, he added. “Look at Egypt’s mobile market, for example. It is a [magnet] for investment. The same is true for the computer market.
To generate more demand and successfully attain its growth objectives, Seagate will focus on awareness branding as well as educating both end-users and retailers on benefits of using its storage drives.
“Quality performance, reliability, speed, and power consumption give our products a competitive edge, boasted Diane El Hachem, Seagate’s marketing manager for the MENA region. “Moreover, our five-year warranty is another advantage that can enable users to replace defective devices without any extra charge.
Last summer, Seagate opened a collection point in Cairo to serve its authorized distributors, resellers, and partners in the country as well as the region, under the company’s extensive warranty program. It aims to allow customers to return and replace disc drives at one central location with relative ease.
Seagate is currently contracting with a number of IT specialty stores to market and brand their products as a part of its new business plan expected to launch by the end of the month.
“Our business plan includes giving retailers monthly [revenue shares] for each Seagate product they sell to act as an incentive to sell more of our brands, El Hachem said.
