Nocom Security, a subsidiary of Nocom AB, is taking aggressive measure to quickly attain profitability. The price-pressured volume distribution was discontinued in February 2007. Operations in Finland and the Baltic countries, with the highest proportion of volume-related sales, will be terminated as of 1 May 2007. Volume-related sales in other countries will be replaced by advanced securitysolutions.
Volume-related sales are fiercely competitive and consist of distribution where the key competitive tools are logistics and price, rather than expertise and choice of product. Nocom Security is now realigning its strategy by terminating volume-related sales with insufficient profitability. The product portfolio will instead be strengthened with more advanced security and storage solutions where technical expertise and value added services will complement the offering and enhance competitiveness.
Nocom Security provides advanced solutions and products for information security from leading vendors such as Utimaco, SonicWall and SurfControl. Operations in Sweden, Norway and Denmark have a high aggregate level of technical knowhow and Nocom Security’s chosen tactic is to concentrate on value added sales of advanced IT solutions to a greater extent than before. The product portfolio will be enhanced with a wider range of products from Symantec’s (Veritas) advanced storage solutions. These are a valuable complement to the existing offering, where Nocom Security’s experience and expertise will give customers substantial added value.
“Our core expertise is in Sweden, Norway and Denmark, and as a value added distributor it is especially important to be familiar with the local market. We will continuing taking in new products where our knowledge of both technology and sales generates significant added value,” says Peter Strand, President of Nocom Security.
“We will continue our focused efforts to strengthen profitability in business area Distribution. This is a first step in which Nocom Security will discontinue volume distribution, replace the product portfolio and pursue ongoing assessment of the organization and its capabilities,” says Stefan Ström, President and CEO of Nocom.