Expanding computer sales into Asia

The Situation

ComputersToYou* wanted to repeat its successful business model in Asia, but its rollout efforts had been slow to bear fruit.

• ComputersToYou is a top US computer vendor with a highly focused business model. The company was undergoing rapid growth in the US and Europe.
• The company's executives were considering expansion into Asia. The region was attractive because it was a low-cost source and was growing overall. China was positioned to be the engine of future growth and Japan was one of the top five computing markets. Moreover, global clients were requesting Asian coverage.
• ComputersToYou established an Asian beachhead two years prior to Bain's involvement. By the time Bain was brought in, the company was poised to roll out its business model and was constructing service and production facilities in the region. However, ComputersToYou-Asia was still only a small operation and had not become one of the top ten in any country. Also, in most of the Asian countries, ComputersToYou was employing a different business model than in the US and Europe.
• ComputersToYou asked Bain to help develop and implement its successful expansion into Asia.

Our Approach

The process of rolling out and refining the business model in Asia spanned four years.

Our Recommendations

By thoroughly evaluating markets and competitive environments, Bain was able to make targeted recommendations for successful expansion.

The Results

By implementing Bain's suggested phased strategy, ComputersToYou has posted impressive results.