Issues

 

 

Trouble in Paradise

1995 in retrospect
IT World

 

     

Trouble in Paradise

 

Nepal being a developing country needs a lot of support form the private sectors. In this regard, an establishment of a private company certainly helps in the development of the nation. Computer company being no exception. A new entry into the computer market this time was not a hidden entry but it came in a distinct way. World Distribution Nepal came in the scene a few days ago and it did cause a ripple in the computer industry. What is so special about this company, why did its entry caused a real sensation in the computer market and what made it the talked about subject in the computer related circle is the focus of our article.

World Distribution Nepal Pvt. Ltd. organized a three day seminar on information technology from April 3rd, 1995. His Royal Highness Crown Prince Dipendra Bir Bikram Shah Dev inaugurated the seminar. On the occasion, His Royal Highness the Crown Prince also viewed an exhibition of computers. The seminar was aimed at contributing towards a better understanding of information technology and its applications and implications and at rendering the economic machinery more efficient through adoption of information technology. In the seminar it was announced that the company will be marketing the products from COMPAQ, DIGITAL, DELL, GATEWAY etc. and this caused a sensation in the computer world because for the mentioned brands there are already existing dealers/distributors in town. Why did World Distribution Nepal came in the scene by announcing the marketing of these brands and how did they came in the scene? What will be their plans in the future and what will be the plans of other competitors are the questions which needs to be answered. In our article we have covered the views of all the related quarters and have placed the matter in front of our beloved readers to analyze the matter. 

 

Background of COMPAQ-CAS Trading House Pvt. Ltd.

Compaq Computer Corporation is renowned for holding the top spot in PC sales in 1994 by selling 12.8 percent of the total 18.4 million units shipped in the same year.

 

In Nepal, CAS Trading House Pvt. Ltd. is the Authorized Dealer of Compaq computers since 199 . The company established in 199  has already established a good reputation in the computer industry in Nepal. It has so far sold around ................computers worth .............. In order to expand its business there are other appointed companies in town: Beltronix, Kantipath, Approved Dealer Associate, Computer Advance System, Putalisadak, Approved Dealer Associate, ................................................................

 

How and why did another company emerged in the same scene when CAS Trading House Pvt. Ltd. is already there in town. This can best be explained by Mr. Yogesh Lal Shrestha, Chairman of CAS Trading House Pvt. Ltd. Mr. Shrestha established the company in ........and later on December 1994 another sister company bearing the name Computer Advance System broke whose Managing Director is Mr. Ramesh B. Joshi. The views of Mr. Shrestha is presented as below.  

 

Q1. How and why did World Distribution Nepal entered in Compaq sales in Nepal?
Was it due to your bad performance?

 

Q2. After World Distributionís entry what will be your market strategy to compete with that company?

 

Q3. In the advertisement published in the Rising Nepal dated ........., why didnít you list World Distribution Nepal when it is also selling Compaq?

 

DELL-Otard International Pte. Ltd.

Dell Marketing L.P. is another leading PC manufacturer which finished in the sixth spot in PC sales in 1994. It sold 4.2 percent of the 18.4 million units shipped in that year.

 

The Authorized Distributor of DELL in Nepal is Otard International Pte. Ltd., Kantipath and the company was established in 199 . It got the distributorship in ........ and have sold around ..........computers so far worth ....................... (Resellers/Dealers ?) Even  though there exists a distributor in Nepal, how and why did World Distributor Nepal came in the scene to sell DELL. This is best explained by the Managing Director, Mr. Raju Shakya whose views are presented below.

 

Q1. How did World Distribution Nepal got DELL when you are the authorized distributor in Nepal?

 

Q2. Ultimately, is it that both of you will market DELL or one of you will pull out from the scene? 

 

Digital Equipment Corporation-CIS Traders Pvt. Ltd.

Digital Equipment Corporation is another leading PC manufacturer which finished tenth in PC sales in 1994.

 

At a reception hosted in the honour of Mr. S. S. Kidiyoor, General Manager, Asia, of Digital Equipment Corporation Pte Ltd. at the Hotel Sherpa, CIS Traders was appointed the Distributor of Digital Equipment Corporation on April 15, 1995. Before that CIS Traders Pvt. Ltd.was the Authorized Dealer of Digital since .........It has also appointed ComHome (P.) Ltd., Mahabouddha, Authorized Reseller and Kathmandu Electronics & Computers (Pvt.) Ltd. as the Service Center and Dealer Associate of Digital Computers. Why did Digital appoint another company to deal the products when it had recently appointed CIS Traders as the distributor. This can best be explained by Mr. Yalam Vaidhya, Director of CIS Traders.

 

Q1. Although you were recently appointed the distributor of Digital how come World Distribution Nepal is also selling Digital?

 

Q2. Donít you have any objections?  

 

Q3. If someone comes with Digital computers form outside Nepal, whom will that person consult when that person requires services of those computers?  

 

COMPAQ, DELL, DIGITAL-World Distribution Nepal Pvt. Ltd.

World Distribution Nepal has already announced that they will market Compaq, Dell, Digital computers. The showroom will be opened at Siddi Niwas from ........................How and why did they achieve those products is best explained by the Managing Director, Mr. Satish Lal Acharya.

 

Q1. How did you manage to take Compaq, Dell and Digital when there are already existing dealers/distributors in town?

 

Q2. Why have you taken so many brands and what will be your market strategy from now onwards?

 

Q3. What will be your relation will the other competitors and how are you going to compete with already established companies?  

 

Computer Association Nepal (CAN) Presidentís View:

Computer Association Nepal (CAN) was established in December 1992 with one of the main objective to provide and protect necessary rights and privileges, benefits to individuals, institutions, companies and organizations affiliated to the activities of CAN. How does the CAN President, Mr. Sanjib Raj Bhandari react to the entry of the World Distribution Nepal.

 

Q1. What are the implications of World Distribution Nepalís entry in the computer market in Nepal?

 

Q2. How will CAN coordinate the unhealthy tussle that is happening in the computer industry at present?

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