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December 5, 1993

MADGE CHANGES ITS DISTRIBUTION STRATEGY FOR THE UK MARKET

By CBR Staff Writer

Madge NV’s Madge Networks Ltd in Chalfont St Giles, Buckinghamshire, is streamlining its sales strategy in the UK, by introducing a single tier of resellers with which it is to deal direct, and in the process has ended its six year distribution relationship with Azlan Group Plc. The new channel strategy is to follow that already in place in Germany and the Benelux countries. Madge’s new resellers are typically to be network integrators according to the company, and will be brought under the Madge Partnership Network banner: Madge says that it is making the move since it has grown to the extent that it is now more economic for it to tackle distribution itself. In addition, the company says that its recent product launches including its branch office and FDDI products – require a specialist knowledge which makes dealing directly with resellers a more efficient option. Madge says that the split with Azlan has been amicable, and that Azlan has been aware of the change for the last four months. This is confirmed by Azlan itself, which has not wasted any time in looking for a new supplier: it has already signed up to distribute Olicom A/S’s products (it already distributes them in Germany) to plug the gap in its range.

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