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Dicker Data
Dicker Data

IT / IT Distribution and Logistics Services

At a Glance | Core Facts | Company | Industry | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web

Company Overview

General information about the Dicker Data company

Dicker Data is an Australian-owned and operated distributor of computer, hardware, software, accessories, and other technology products. The company was founded in 1978 by David Dicker and is headquartered in Kurnell, New South Wales. It began as a small business selling Apple II computers to local schools and quickly expanded to become one of the country s largest and most successful IT distributors.
Today, Dicker Data offers a wide range of products and services to its customers, including hardware and software distribution, logistics, financing, and marketing support. The company partners with leading technology brands such as HP, Lenovo, Microsoft, and Apple to provide solutions to businesses of all sizes, from small startups to large enterprises.
In addition to its distribution services, Dicker Data also offers training certifications for its partner brands, as well as technical services and support. The company prides itself on its strong relationships with vendors and customers, and its commitment to delivering exceptional customer service.
Dicker Data has a strong presence in Australia and New Zealand, with distribution centers and offices located in all major cities. The company has received numerous awards and recognition for its growth and performance, including being named Distributor of the Year by several industry publications.

What is special about the Dicker Data company?

1. Extensive product portfolio: Dicker Data offers an extensive range of products and services from leading brands in the IT industry, such as HP, Microsoft, Lenovo, Cisco, and many more.
2. Experienced management team: The company is led by a highly experienced and knowledgeable management team, with a proven track record in the IT industry.
3. Strong financial performance: Dicker Data has consistently delivered strong financial results, with significant revenue growth and profitability since its inception.
4. Strong partner relationships: Dicker Data has strong partnerships with leading vendors, which allows them to offer their customers the latest and most innovative products and solutions.
5. Scalable distribution network: The company has a scalable and efficient distribution network that covers the entire Australia and New Zealand region, ensuring timely delivery of products to customers.
6. Focus on sustainability: Dicker Data is committed to sustainability and has implemented various initiatives to reduce its environmental impact, such as recycling programs and energy-efficient operations.
7. Customer-focused approach: The company has a strong focus on customer service, offering personalized solutions and dedicated support to meet the unique needs of each customer.
8. Advanced logistics capabilities: Dicker Data has advanced logistics capabilities, including warehousing, inventory management, and delivery services, allowing them to efficiently handle large volumes of orders.
9. Strong corporate culture: The company has a strong corporate culture, promoting teamwork, innovation, and a customer-centric mindset among its employees.
10. Industry recognition: Dicker Data has been consistently recognized by industry organizations for its excellence in service, distribution, and sustainability, including being named the ARN Distributor of the Year multiple times.

Interesting facts about the Dicker Data company

1. Dicker Data was established in 1978 by David Dicker, who remains the company’s chairman and CEO to this day.
2. The company is headquartered in Kurnell, New South Wales, Australia.
3. Dicker Data was initially known as Dicker & Data, but the ampersand was dropped in 2006.
4. In 2018, Dicker Data was named the largest Australian-owned IT company in Australia by CRN, with revenues of over $1 billion.
5. The company specializes in the distribution of technology products from leading brands such as HP, Lenovo, Microsoft, Cisco, and Samsung.
6. Dicker Data’s business model involves distributing products to over 5,500 resellers across Australia, including retailers, system integrators, and value-added resellers.
7. The company has over 600 employees and operates from six locations across Australia and New Zealand.
8. In 2013, Dicker Data acquired Express Data, a leading IT distributor in the ANZ region, for $65.5 million, making it the second-largest IT distributor in the region.
9. Dicker Data was listed on the Australian Securities Exchange (ASX) in 2011, with an initial public offering (IPO) of $37 million.
10. In 2014, the company signed a deal with the Australian Government to supply Microsoft products to government agencies and departments.
11. In 2017, Dicker Data signed a multi-year distribution agreement with Dell EMC to distribute Dell’s entire range of products in Australia.
12. The company has received numerous awards and accolades, including CRN’s Distributor of the Year award in 2018 and the Deloitte Fast 50 award for six consecutive years.
13. Dicker Data is committed to sustainability and has implemented several initiatives to reduce its carbon footprint, including investing in solar power and becoming a zero-landfill company.
14. The company also has a strong focus on giving back to the community, with regular charity events and donations to various charities and organizations, including the Starlight Children’s Foundation and the McGrath Foundation.

What is the Dicker Data company's primary line of business?

The Dicker Data company s primary line of business is providing IT distribution services, including product sourcing, logistics, marketing, and financing, to resellers and retailers in the technology industry.

What is the market opportunity of the Dicker Data company?

The market opportunity of Dicker Data is significant and continues to grow due to the increasing demand for technology products and services in the global market. As an Australian-based IT distributor, Dicker Data operates in the B2B market, serving a wide range of customers, including retailers, resellers, system integrators, and service providers.
The company offers a diverse portfolio of technology products from leading brands, including hardware, software, and cloud services. With the rise of digital transformation, the demand for these products is expected to continue to grow, creating a significant market opportunity for Dicker Data.
Additionally, Dicker Data has a strong presence in the Australian and New Zealand markets, which are considered key growth markets for the IT industry. The company s strategic partnerships with major technology vendors also provide a competitive advantage and further contribute to its market opportunity.
In its 2020 annual report, Dicker Data reported record revenue of $2.07 billion, representing a 16% increase from the previous year. The company's strong financial performance demonstrates its ability to capitalize on the growing market opportunity.
Furthermore, Dicker Data has been expanding its operations into new markets in Southeast Asia, which offers additional growth potential. The company's expansion into cloud and subscription-based services also presents new revenue opportunities in the rapidly growing cloud market.
In conclusion, with its strong market position, diverse product portfolio, and strategic growth initiatives, Dicker Data has a significant market opportunity in the global technology industry.

SWOT analysis of the Dicker Data company

Strengths:
1. Strong financial performance: Dicker Data has consistently reported strong financial performance, with steady revenue growth and high profitability. In the 2019 financial year, the company recorded a revenue of A$1.85 billion and a net profit after tax of A$47 million.
2. Wide range of products: The company offers a wide range of products from leading technology brands, including hardware, software, networking, and cloud solutions. This allows Dicker Data to cater to the evolving needs of their customers and stay ahead of competitors in the market.
3. Strong partnerships: Dicker Data has strong partnerships and alliances with some of the leading technology vendors in the industry such as HP, Lenovo, Microsoft, Cisco, and Dell. These partnerships provide the company with access to a diverse range of products and services, enabling them to offer innovative solutions to their customers.
4. Efficient distribution network: Dicker Data has a highly efficient distribution network, with multiple warehouses strategically located throughout Australia and New Zealand. This allows the company to quickly and efficiently deliver products to their customers, improving customer satisfaction and reducing delivery times.
5. Strong customer base: Dicker Data has a strong and loyal customer base, which includes a mix of resellers, retailers, and corporate customers. The company s focus on providing excellent customer service and support has helped them build strong relationships with their customers, leading to repeat business and positive word-of-mouth referrals.
Weaknesses:
1. Reliance on key vendors: Dicker Data is heavily reliant on a few key vendors for a significant portion of their revenue. Any unfavorable changes in these vendors' strategies or performance could have a significant impact on the company's revenue and profitability.
2. Dependence on the Australian and New Zealand markets: Dicker Data primarily operates in the Australian and New Zealand markets, which makes the company vulnerable to any economic or political changes in these countries. A downturn in either of these markets could negatively impact the company's financial performance.
3. Limited global presence: While Dicker Data has partnerships with international vendors, the company's presence is limited to the Australian and New Zealand markets. This restricts their growth potential and exposes them to risks in these specific markets.
Opportunities:
1. Growing demand for cloud solutions: With the increasing trend towards cloud computing, there is a significant opportunity for Dicker Data to expand their cloud solutions portfolio and tap into the growing market demand.
2. Expansion into new markets: Dicker Data could consider expanding its operations into other regions, such as Asia-Pacific, Europe, or North America, to reduce its dependence on the Australian and New Zealand markets and tap into new customer bases.
3. Strategic acquisitions: The company has a strong financial position, which puts them in a favorable position to pursue strategic acquisitions that could help them expand their product portfolio and customer base.
Threats:
1. Intense competition: The technology distribution market in Australia and New Zealand is highly competitive, with several established players and new entrants. Dicker Data faces intense competition from these players, which could impact their market share and profitability.
2. Rapid technological advancements: The technology industry is continuously evolving, and new products and solutions are constantly being introduced. This puts pressure on Dicker Data to continually adapt and update their offerings to stay competitive with other distributors in the market.
3. External market factors: The company is vulnerable to external market factors such as fluctuations in exchange rates, changes in trade policies, and economic conditions. These factors could impact the cost of products, sales, and profitability.
Overall, Dicker Data has a strong financial position and partnerships with leading technology vendors, which gives them a competitive advantage in the market. However, the company needs to address its dependence on key vendors and the limited geographical presence to mitigate risks and continue its growth trajectory.

Porter's Five Forces analysis for the Dicker Data company

Porter’s Five Forces analysis is a framework for understanding the level of competition and attractiveness of an industry. It is helpful in identifying a company’s competitive position and potential for profitability. This analysis will evaluate the Dicker Data company’s industry using Porter’s Five Forces model.
1. Threat of New Entrants
The threat of new entrants for Dicker Data is low. The IT distribution industry is highly regulated and requires significant capital investment and distribution expertise. Dicker Data has an established reputation and strong relationships with its suppliers and customers, making it difficult for new competitors to enter the market. Additionally, the company has a wide product range and a large customer base, giving it a competitive advantage over potential new entrants.
2. Bargaining Power of Suppliers
The bargaining power of suppliers for Dicker Data is moderate. The company has a large network of suppliers, which helps to reduce its dependence on any single supplier. However, some suppliers may have a strong hold over the market due to their exclusive distribution agreements, which could potentially increase costs for Dicker Data. In such cases, the company may face difficulty in negotiating favorable terms with its suppliers.
3. Bargaining Power of Customers
The bargaining power of customers for Dicker Data is high. The IT distribution market is highly competitive, and customers have various options to choose from. This gives them the power to negotiate prices and seek better deals from the company. To maintain customer loyalty, Dicker Data may need to offer competitive pricing and high-quality services.
4. Threat of Substitutes
The threat of substitutes for Dicker Data is high. The company operates in a rapidly evolving industry, and there are new technologies and products being introduced constantly, making it easier for customers to find alternatives to Dicker Data’s products and services. This puts pressure on the company to continuously innovate and offer differentiated products and services to stay competitive.
5. Competitive Rivalry
The competitive rivalry for Dicker Data is high. The IT distribution market is highly competitive, with many large and established players, including Tech Data, Ingram Micro, and Synnex. These competitors have similar product ranges and services, which increases the intensity of competition. Dicker Data’s success is dependent on its ability to differentiate itself in the market and maintain strong relationships with its suppliers and customers.
Overall, the Dicker Data company operates in a moderately attractive industry, with moderate barriers to entry and a high degree of competition. The company’s established reputation and strong relationships with suppliers and customers provide it with a competitive advantage, but it must continuously innovate and differentiate itself to maintain its position in the market.

What is the Dicker Data company's business model?

The business model of Dicker Data is as follows:
1. Distribution Services: Dicker Data is a distributor of information technology products, services, and solutions. They source products from over 70 vendors and distribute them to more than 5,000 resellers across Australia and New Zealand.
2. Value-added Services: Dicker Data provides value-added services to their resellers to help them grow their businesses. This includes pre-sales support, training, marketing, and financing solutions.
3. Relationship-Based Sales: Dicker Data focuses on building strong relationships with both vendors and resellers. They work closely with their vendors to understand their products and provide technical support to their resellers to help them sell the products effectively.
4. Efficient Supply Chain: Dicker Data has a highly efficient supply chain with strategically located warehouses and distribution centers. This enables them to deliver products to their resellers quickly and efficiently.
5. Digital Transformation: Dicker Data is continuously investing in digital transformation initiatives to improve their processes and technologies. This helps them to offer better services to their resellers and vendors and stay ahead of the competition.
6. Inorganic Growth: Dicker Data has a growth strategy that includes acquiring complementary businesses to expand their product portfolio and customer base.
7. Strong Financials: Dicker Data has a strong financial performance, with consistent revenue growth and profitability. This allows them to reinvest in their business and continue to expand their operations.
Overall, Dicker Data s business model is based on building strong relationships, providing value-added services, and maintaining an efficient supply chain to offer a comprehensive distribution solution for information technology products in the Australian and New Zealand markets.

What is the Dicker Data company's unique selling proposition?

The Dicker Data company s unique selling proposition is its specialization in distribution and delivery of information technology (IT) products, solutions, and services. They offer an extensive range of products from a variety of leading brands, along with value-added services such as pre-sales support, configuration, and integration services. Their value proposition lies in their strong relationships with technology vendors, expertise in logistics and supply chain management, customer-centric approach, and focus on delivering innovative and relevant IT solutions to help businesses grow and succeed. Additionally, their robust partner programs and technical expertise allow them to support and empower their reseller partners to enhance their capabilities and drive better business outcomes for their customers.

How does the Dicker Data company differentiate itself in the market?

There are several ways that Dicker Data differentiates itself in the market:
1. Strong partnerships: Dicker Data has formed strategic partnerships with some of the biggest and most popular technology brands, such as HP, Microsoft, Cisco, and Lenovo. This allows them to offer a wide range of quality products to their customers.
2. Focus on customer service: Dicker Data prides itself on its customer service, offering dedicated account managers, fast and efficient delivery, and flexible financing options. This level of personalized service sets them apart from their competitors.
3. Extensive product range: Dicker Data offers an extensive product range that includes hardware, software, networking, storage, and cloud solutions. This allows them to cater to the diverse needs of their customers and provide a one-stop-shop for all their technology needs.
4. In-house cloud platform: Dicker Data has developed its own cloud platform, Base-IT, which offers cloud infrastructure, backup, and disaster recovery solutions. This allows them to offer a unique and comprehensive cloud solution to their customers.
5. Technical expertise: Dicker Data has a team of highly skilled and experienced technicians who provide pre-sales and technical support to their customers. This expertise helps customers make informed decisions and ensures smooth implementation and usage of their products.
6. Proactive approach: Dicker Data takes a proactive approach to address the evolving needs of their customers and the market. They constantly research and invest in emerging technologies to provide their customers with innovative solutions.
7. Strong local presence: Dicker Data has a strong local presence in Australia and New Zealand, with strategically located warehouses and offices. This allows them to provide timely and efficient services to their customers.
Overall, Dicker Data s focus on partnerships, customer service, product range, technical expertise, proactive approach, and local presence sets them apart from their competitors and helps them stay ahead in the market.

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