Business Description Located in Clearwater, Florida, Tech Data (TECD) was founded in 1974 and is one of the world’s largest wholesale distributors of technology products and Europe’s largest distributor of SMB technological services. The company plays a key role in supply chain and logistics services to Small and Medium sized businesses that would otherwise not be able to receive such high quality services from large technology vendors. TECD has 5 strategic focus areas: Broadline, Data Center, Cloud Services, Mobility, and Consumer Electronics. The main business is mainly divided between the Americas and Europe. The percentage of net sales in the Americas …show more content…
This percentage of sales has experienced an increase over recent years. Software and Cloud categories include visualization, security, desktops applications, operating systems, and utilities software. Currently Software and Cloud accounts for $5 billion in sales and 18% of total sales. This percentage of sales has experienced an increase over recent years. Many SMB’s have been slow to adapt to incorporating cloud software into their operations. It is expected that they will begin to incorporate their software in the near future. This is a growth opportunity for TECD.Mobility categories include mobile phones, accessories, activations, and mobile device management Currently Mobility accounts for $3 billion in sales and 10% of total sales. This percentage of sales has experienced an increase over recent years. In 2008, TECD entered into a joint venture with Brightstar to increase its presence in the mobility products in Europe which is a much more consolidated market than in the United States. In 2013, TECD bought Brightstar’s share in the joint venture Consumer Electronics categories include TVs, digital displays, network-attached, and consumer devices. Currently Consumer Electronics accounts for $1 billion in sales and 3% of total sales. This percentage of sales has experienced a decline over recent years. Current Strategy The current strategic benchmarkof TECD is to meet or exceed the overall IT market growth rate. To achieve this, the company has a 3 pronged strategy based on executive, diversification and innovation. The company executes its business in a superior fashion that adds tangible to its customers. The company has 26 strategically located logistics centers that support same day shipping amongst technology products; 14 of which are in the Americas, 12 are