With the lack of dialogue in the Imaging Channel regarding the situation, Clover finds itself. I wanted to share more thoughts and concerns for the Imaging Channel. I also believe the Imaging Channel is not alone, and other technology reseller verticals will face challenges of their own as Private Equity reexamines what they thought they knew.
Private Equity will begin auditing market realities amid Clover (4L Holdings) apparent troubles. The Investments in the declining industry of print equipment and service resellers without diversification has always puzzled me. Private Equity continues making short term bets that another P/E group will bail them out at a higher price than the one they bailed out. The time is fast approaching where the buyers will securitize the realities of the market, and investors will stop making those bets.
My friends, when a billion-dollar organization fails to get funding the examinations on those remaining in its industry will be forensic. Investors do indeed chase and gamble for high returns. However, once there is a significant failure, they will pick up their chips and go to another table. So, Caution! To those with too many chips on the table, or those who have high credit lines with banks.
Everything is excellent when investments align with markets, but when the market gets out of alignment, the investors go to another market.
The industry is heading in the direction which should scare all logical people into focusing on market realities and then change the game being played. Dealers have to develop strategies which allow them to capitalize and profit off the decline in print, and they must diversify.
The industry's obsession to continue overselling A3, to ignore competitive threats, and operate on outdated processes will expedite the ending of their relevance. The Imaging Channel must stop chasing revenue at all cost, or that too will cost them their future.
"A company becomes obsolete when they focus on delivering the past to the future instead of delivering the future to the present."
So, as your status quo, competition continues chasing revenue with no regards to profit or keeps buying each other with no diversification strategy. Be different and sell based on market realities. Become a customer-centric organization and change the game. Look for partners who have imagination and won't hold you to programs built from memories. Join new peer groups in adjacent industries and stop doing the same things you were doing in 2000. Remember, my friends; the future is easier to navigate for those who have been there in their mind first.
"Disruptions are a result of tired industries who feel more comfortable being complacent that challenging themselves to create the new relevance."
"Status quo is the killer of all that will be invented"
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Ray Stasieczko
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