Learning from SMB/SOHO vendor: D-Link

Separating his OEM/ODM BU since 2005, D-Link focus 100% on building his branding and in the coming years, grew gross margin from 13% to 61%; doubled EPS the same time. I, by chance, took a peak on his website lately and found several interesting initiatives that would like to share with you, including D-LinkTV and Partner Reward MasterCard.

A quick look back: In 2003 while D-Link decided to separate his OEM/ODM BU, there were big argument internally and organization changed later on. At that time, D-Link was a $400M company, about same size as Accton with 11-13% gross margin for both companies. 2 years later, D-Link separated OEM/ODM Company, AlphaNetworks went IPO, so D-Link became fully own brand company. Comparing to Accton Today, D-Link grew operational margin to 34% and Accton is minus for recent 2 years. I am not in the position to comment what's the right move here. This article is about some interesting initiatives I see after D-Link eats, sleeps only his brand name.1. D-LinkTV: (http://www.d-linktv.com/) when there is a new article in several different formats, I personally would prefer to "see" the video clip, than "listen" to it, than "read" it, well... if I have time. I'm very impressed with their initiative to put almost everything in "video", including new product launch, channel program, news...etc. Interesting enough that not only it provides Share Video, Podcast, and RSS functions, D-Link makes it even more YouTube-like to "rank" each video, add "comments", and open to video submission about user experience on using their products. I am not sure how they can build the community, but at least they "ease" the way to learn more about them. But after browsing through several videos, it bored me with too much "talking", and too less "scene". At least they can switch to some PowerPoint slides or close look at the products to make it more vivid. Even more important, there is no "fun" seeing those video that I might not want to come back and see more again. I personally love the way Cisco CDO has done to put a funnyman part in the serious demonstration. One video you can try to see how they put your favorite "skin" to home-used network device, say, Big New York Yankee...etc. http://www.dlinktv.com/?vid=2372. Partner Reward MasterCard (http://www.dlinktv.com/?vid=9) we had done lots of partner reward programs and there are always arguments on where the incentive goes to? The reseller company's margin or the Sales pocket? But they all complaint one thing - the reward has too many limitations and comes too late, say 3 months or 6 months after I'd done my part of work. D-Link puts the partner reward to the "credit" of MasterCard, that owner can use it anywhere and anytime, and even cash it out from ATM. Not only it benefits to the sales directly, they also owns the most complete Sales personal information for their future design of target marketing.I can feel how hard they try to differentiate themselves in the market, and believe they are on the right track that takes effect on their finance performance as well.