D-Link 2014 Annual Report Download - page 5

CASE STUDY: AIRTEL
Bharti Airtel Limited is a leading global tele
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in 20 countries across Asia and Africa. Th
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service providers globally by number of su include 2G, 3G, and 4G wireless services,
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speed DSL broadband, IPTV, DTH, and en
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international long distance services to car
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a new line of ADSL routers for their subsc
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them the best possible solution. The telecom sector in India is highly co
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providers like Beetel and Binatone. The e
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often ends with a reverse auction as co
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other. Furthermore, telecom companies
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customization in terms of firmware and s
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these factors make it difficult for new playe
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Differentiation was the key to D-Link’s s
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product at a better price point, and effect infrastructure and nationwide service importantly – we were able to offer tim
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customer’s unique needs. The case clearly
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overarching global strategy: to think global
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providers, affording them a tremendous amount of flexibility. D-Link is also transitioning from FOB (Free On Board) supply schemes to DDP (Delivery Duty Paid) in Russia. For this purpose, a production and logistics center has been constructed in Ryazan. By producing products locally, we will be allowed to participate in the state import substitution program (a cornerstone of Russia’s plan to improve economic conditions) and thus secure our leadership position in the region. As in Russia, the macroeconomic situation in Brazil, Latin America’s most important market, also worsened significantly in 2014. Growth slowed from 2.7% in 2013 to just 0.1% in 2014. Still, the IT market in Brazil is the 7th largest in the world and enjoyed US$ 60 billion in investments, a growth of 6.7% YoY. D-Link’s total revenue in Brazil grew by 15% YoY, and the company showed strong performance in the telecom service provider segment. The retail segment also grew significantly as we strove to position ourselves as an added value company, supported by marketing services and innovative new products such as our Wi-Fi Baby Cameras and 11AC routers. The DIR-615 router was one of the most important products in the country, responsible for D-Link’s share of the N300 market rising from nearly 0% in 2013 to 27% in 2014, second only to Link One. And by re-positioning the DIR-505 and 503 primarily as “repeaters” (devices that repeat wireless signals to extend range) rather than personal routers, retailers were able to sell substantially more of them. Although emerging markets continued to pose significant challenges to multinational firms in 2014, D-Link was able to pursue many unique local initiatives. Through increased product differentiation and a strong emphasis on “glocalization”, D-Link drove demand for cutting edge, custom- tailored
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roducts in multi
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ive the digital economy
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ctacular in India, with a
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s.135.83 million in 2013
t shipment market share
ecosystem in India. We have witnessed steady business growth for 3G/4G products as the proliferation of Internet adoption fueled by handheld devices like mobile phones and tablets has led to increased demand for wireless products. The government sector has also been a major business driver in India, and D-Link has won many substantial contracts. In addition, there has been strong demand for D-Link’s products from the education sector, as more and more campuses seek to modernize themselves with Wi-Fi and IP Camera surveillance solutions. Finally, partnerships with major telecom companies such as Airtel, Tata, and Hatchway have driven demand for D-Link’s ADSL routers and led to some big victories for the company in a highly competitive market. In 2014, Russia struggled economically due to falling oil prices, western sanctions imposed over the Ukraine crisis, and currency instability. Difficult economic conditions have changed the direction of market development, but have not restricted it. With brand presence in all the major Russian and CIS retail networks, 33 offices in Russia and 15 in the CIS, and 24-7 technical support with after-sales service throughout the region, D-Link is still a major player in these markets, with sales of Internet gateways, routers, and
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