As I consider the challenges facing the small value-added resellers (VARs) in the channel, the concept of uniqueness and individuality is especially relevant. It can be a daunting task for VARs to compete against the largest vendors in the marketplace.  Just as smaller stores worry about being run out of business by large retail conglomerates, VARs also worry that they’ll be overcome by large companies and their seemingly endless resources. VARs wonder how they can possibly offer the same advantages to their customers when they don’t necessarily have the same reach or resources as the big players.

However, small organizations – from local stores to small VARs – have one thing that the generalist enterprises don’t have:  the ability for unique specialization.  The key to their success lies in strength of focus and one-of-a-kind competitive advantages. 

Most VARs are small or medium sized businesses (SMBs) and, as such, need to determine the differentiator that makes them stand apart from the rest of the crowd.  Specialization is vital, and I’ll tell you that the more specialized a VAR can be, the better positioned it will be for growth. To determine an area of specialization, VARs should consider their strengths and determine how to match those strengths against the opportunity-rich segments of the marketplace.  For example, they can sell services and solutions to the burgeoning SMB segment withth e perspective of a peer, rather than a vendor. 

Another approach is to offer solutions tailored to take advantage of the market’s needs based on where the business is operated. If you think about it, markets coalesce around geographies. Some places have a wealth of telecommunications companies or a booming fish market. But by focusing on the specific opportunities the local market offers, smaller businesses will be able to distinguish themselves from larger competitors.   

VARs also have another critical advantage that large providers don’t: agility to quickly respond to feedback.  As they are typically local to their customers, and therefore have frequent face-to-face contact with those customers, smaller VARs stand on the front line of solutions and services delivery, receiving feedback directly from customers.  They can adopt their area of specialization by listening to customers and responding accordingly.  Large vendors rarely have the flexibility to respond in the same timeframe.

Plus, by working with the right partner, such as AMD, VARs can further hone their area of specialization. AMD supports partners by providing a wealth of resources, allowing VARs to focus on their competitive edge while also getting the right marketing, sales and IT tools to help them ideally position themselves. If each VAR is unique in the portfolio it is delivering to the marketplace, then its partnership needs are also unique.  AMD’s Fusion Partner Program is a perfect fit because it customizes the tools and resources that each VAR receives, based on that VAR’s specific pain points.

Although they worry that they will be blown away by larger providers, VARs will always have a position in the marketplace because specialists will always win business.  The trick to weathering the competitive storm is for VARs to promote their individuality and competitive edge, supported by a trusted partner like AMD. 

David Kenyon is VP of WW Channel Marketing for AMD. His postings are his own opinions and may not represent AMD’s positions, strategies or opinions. Links to third party sites are provided for convenience and unless explicitly stated, AMD is not responsible for the contents of such linked sites and no endorsement is implied.