It sounds like Axis wants to build a similar experience like Apple Stores.
I am curious to know how this operation is going to be funded.
Axis American Expansion Plan Examined
CP
Surveillance manufacturers generally only have a single office even in a large country like the US. Now, Axis' ambitious expansion plan has them poised to open six US office "to get even closer to partners and joint customers." In this note, based on speaking with Axis, we examine how this will impact their competitive positioning and their relationships with integrators and users.
The New Offices
*** ******* ***** ** **** *** new *.*. ******* (*********, ***-********, *********, Midwest, ***** ******* *** ****). ***** new ******* *** ******* ** **** in ****. **** ******** *** ********* office ******* ****** ****’ ******-**** ***** American ************ ***** ****** **** ****, a ******* ****** ******* ** ******* planned *** **, *** * **** office ******* ** *** *** *******-**** in **** ****.
**** ** * *** ** *** regions *** *** ******* **** *****:
**** ******** **** ** ****** *,*** square **** *** **** ******* * small ***** ****, ********* "****** *****, regional ***** ********, ***** ***** *********, local ******** *** * ******** ***** marketing ******." *** ******* **** ** *** by * ******** **** ******* *** will ****** ** *** ***** ******** Director ** *****.
**** **** ** ******** ******* ****** ********** ********** **** ******* ***** *** ********, demos, ******* ** **** ** ******* in *** ****.
US ****
*** ******** ******* *** ******* **** of ****' $***+ ******* *** ****** revenue. *** ** *********, **** ** it *** *** *** *******, ***** still ** *** ** *** ** largest ************ ************* ** *** *****.
U.S. *********
**** ******* ~** ******** ***** ******** and ~*** ** *********. ** * result ** ** ****** **********, ***** are * ****** ** **** ********* in ***** ***** ******** ******* ** well.
Helps **** ********** ******** *** *** ******* *********
****** ******* ****** ** ***********, **** believes **** **** ** **** ** train *** *********** *** ********. **** a ********** ***** *******, *********** *** get ** ** ***** **** **** is *** *** *** *** *** products *** ** ** *** ******** offices. “We ******* **** ***** ** ****** for ********, *** ** ***** ** would ** **** ********* **** *** own *****,” *** ******* ****.
Helps **** ******** *******
****** ******** ******* ***** **** ** easier *** **** ** ***** *** to *** *****. “**** ** *** large ********* **** ** **** * relationship, **** **** ** **** ****** to **** **. **** ****** *** the ******** **** ******* *** ********** they **** ** **** **** **** understand ****’* ***** **,” **** ****.
Integrators ********?
**** *********** **** ** **** ************* as *** **** ** ******** **** 'their' *********. ****** ******** ********** ****** to *** *****, ***** ** ****** for **** ** *********** ****, *********** and ******* **** ********, ******* ********* on ** **********.
*******, **** **** ** **** **** as * ******* *** **** *** users *** ***********. “*** *** *********** ** work ******* ****, **** ** ** opportunity ** ***** **** ******** ** them,” **** ****. **** **** *** offices **** ******* *********** ** ****** them * ***** **** *** ** training ** ***** **** *** *********. The ******* **** ****** ** *** history ** *** ***** ****** ******** as * ****** *********** ****** *** worry.
Competitive ******
********** *** **** ****** ****, **** should ** **** ** ****** **** effectively **** ******** *******, ******* ** drive **** ******** **** ******** ***** demonstrations, ********* *** ********. *** ***** the **** ** ******* **** **********, it ** ********* **** *** *** potentially *****.
** ***** **** ** ******** ** be * ***** ******* *** ***** manufacturers, ** **** **** **** **** more ******* **** *****, ********** ****** ones, *** **** ********** ** ********** selling.
******: **** ********* **** *** **********, emphasizing ****, "**’** ***% ********* ** the ******* *** *****. *********** *** other ******** **** **** ****** ** for **** *** **** ***** *******, customized *********, ***** *********, ******* *********, etc. ** ****** ******* ***** ***** to **** ***** ***** *** ****."
Comments (2)
UM
Undisclosed Manufacturer #1
Feb 05, 2014JH
John Honovich
Feb 05, 2014It's not like Apple stores at all. Apple has 400+ stores, and, for example, 3 of which are within 10 minutes of where I live. It's a consumer play.
If you want an analogy, I think Cisco sales offices would be better (though they have ~100 so its much more developed).
They do ~$300 million in US revenue, which should be more than enough to cover the costs of opening 5 mid size offices throughout the US. It probably will not cost them a million per year to maintain those 5 new sites (lease costs, etc.) and it will be defrayed by reducing costs for renting rooms/meeting rooms and increased revenue from more sales in those regions, etc.