As the world continues to witness one of the worst economic slowdowns till date, enterprises across the globe are gearing up in anticipation of the worst. With predictions doing the rounds that the worst of the slowdown might come in mid-June this year, companies are now on their way to strategize their business in a more concrete manner. While some companies are taking the policy of lay-offs, some are resorting to pay-cuts and some are in the process of delimiting their business by putting a hold on key projects in the country, aggressive companies are now taking up the policy of reengineering their entire business process.

Samsung India, reengineered
It is with this perspective, that Samsung India is reengineering its IT business model, aiming to grow at 25 percent in the coming FY. With the exit of Sanjay Sharma, ex-VP-IT, Samsung India, the company was quick to appoint Gurpreet Brar as his replacement and restructure its IT business model setting an aggressive target for its monitor and printer divisions. Accrediting the move to the aim of emerging as a solution provider rather than a peripheral manufacturer, the company has been drastic in its approach in organizing its business into two verticals; namely volume and printer business. It is in this respect, that the company has now shuffled its higher management structure with Gurpreet Brar being appointed as GM of Volume Sales and Uday Bhatt taking charge as the GM of Printer Business. Also, B2B transactions for the complete IT division henceforward, will be taken care of by Bhatt. Again, for the logistical part and supply-chain, Ranjit Yadav has taken charge as the Director of IT with an additional function of supervising over the volume and printer business heads.

Commenting on the company's efforts in reengineering its policy, Yadav said, “Restructuring is a part of the company's efforts to position itself as an IT solutions provider rather than a mere peripheral company. We are doing so not only in terms of our products and offerings but also in terms of strengthening the internal orientation structure, building the team as well as enhancing the customer interface.”

Restructuring is a part of the company's efforts to position itself as an IT solutions provider rather than a mere peripheral company Ranjit Yadav Director-IT, Samsung India

Supplies going for a toss
However, amidst all the change the company has been hit with a shortage of LCD monitors and ink cartridges in some parts of India. Dealers across Ranchi along with the eastern and southern upcountry regions have been complaining of shortage of Samsung LCDs in their stocks and LG filling in the vacuum. Even metros like Kolkata and Chennai have been hit hard by the ongoing shortage. Blaming Samsung's distribution policy across India for the ongoing shortage, Lalit Kothari of Sweta Computers, Hyderabad complained, “There is an acute shortage of Samsung LCD monitors here. Demand is high in the market, but Samsung is not able to generate enough supply to meet the requirement.” Also, in Kolkata, dealers are complaining about a similar shortage.

Samsung's take
When questioned abput the apparent scenario, Brar brushed aside the allegations stating, “There is no issue regarding a shortage in supply of Samsung LCD monitors across India to my knowledge. It's all rumors and we are witnessing a steady market growth,” sources in the company in parts of western India confirmed the crisis in its printer division.

Defending Samsung, regarding delay in cartridge shipment in a recent issue in Mumbai, Bhat said, “There was a delayed shipment in February which had created a temporary supply constraint. But knowing the consumers' sensitivity to cartridges, we made some emergency movement of stocks and rectified the situation immediately.”

In Q3 FY 2008, Samsung launched its notebook and desktop range-R, Q and X series, with a strategy to market the range through LFRs and micro-retailers across the country. Also, the company will soon be adding more products to its portfolio and increase its presence across the cities by increasing the micro-retail base. It is in this process, that the company is eyeing a lucrative 25 percent increase in it's business for the coming FY. Presently, Samsung has a well organised base of 330 Star partners and 3,500 SIs to run its monitor business. Also, on the printer front, Samsung has recently appointed Ingram Micro besides Reliance Industries Ltd (RIL) and Neoteric as its national distributors to strengthen its supplies to the channel community.

LG taking the lead?
Despite the slowdown, the demand has gradually increased overtime and with the shortage of Samsung LCD supplies, LG has eaten into the former's marketshare considerably. Also, sources in Ingram Micro said that the issue of shortage of Samsung LCD monitors is going on for the past three months particularly in the eastern upcountry.

Signaling a deliberative move from Samsung's end regarding the LCD shortage, Yadav stated, “In January, we registered a good sell out for our LCD monitors based on our SI schemes. We also consciously managed the channel stocks to reduce their risk and ensure healthy profitability given the market conditions. With our LCD monitors showing good sales over the past couple of months, we have eased up the stocks from March onwards.”

Avishek Rakshit
avishekr@cybermedia.co.in

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