Comtrade group

ComTrade Group is information technology corporation, registered as holding company in Netherlands and headquartered in Belgrade, Serbia. It was founded in 1996 by Mr. Veselin Jevrosimović, current president and until recently the only shareholder of the company. After several successful years of specialization in importing and distribution of IT equipment from major global manufacturers, the focus of business operations had been diversified to include PC assembling, comprehensive IT solutions providing and IT retailing, while in 2007 the company entered consumer electronic market with assortment of its own brand-name products. In 2008, ComTrade Group acquired Hermes SoftLab, well-known software development organization based in Slovenia, with member companies in several developed Western markets. The group now employs over 1600 people (making it the largest IT company in South Eastern Europe), includes companies in 14 different countries and spans over 3 continents–Europe, Asia and North America.

ComTrade Group history

Expansion years (1996–2001)

Early years of ComTrade Group were marked with strong orientation towards obtaining contracts with leading IT manufacturers and promotion of new technologies in the underdeveloped Serbian market. Although ultimately successful, this process didn’t run smoothly, as majority of Serbian population was living with restricted income due to political instability and economic hardships. After establishing itself in the local market, ComTrade moved on to the neighboring countries–an ambitious task considering the ethnic tensions in the region. However, the appeal of exciting new technologies was strong enough to overcome all obstacles and ComTrade effectively proved that it was technically capable of delivering all around the region. At the end of this phase, ComTrade had partnership agreements with more-less every significant equipment manufacturer and controlled large portion of the regional market.

Diversification years (2001–2007)

As the distribution margins began to shrink in South Eastern Europe as the result of initial saturation of the market (ironically, ComTrade imported most of the products), ComTrade Group searched for new ways to maintain profitability. The answer was found in a new way of expansion–this time it was the dispersal of activities in several directions. PC assembling⁽¹⁾ was seen as a way to offer the first local brand of ready-to-use computers, and throughout the years several series of home and business models were launched. IT solution providing was perceived as the future of IT business, and company endured few years of shaky results in order to support its new key income-generating sector (as predicted, solutions branch did become profitable and continues to grow rapidly to this day). Retailing business followed soon after, with a chain of owned and franchised stores all around Serbia and Bosnia, rounding up a complete set of IT services offered by the company.During this phase, territorial expansion reached new highs, with companies in USA and Saudi Arabia being added to the system. At the same time, total turnover multiplied several times, sending off the company into the top tier of the most successful regional enterprises.

Integration years (2008–present)

In April of 2008, ComTrade Group made two big steps that changed the essential identity of the company. First, the company allowed Unicredit bank to acquire ownership over 21% of ComTrade Group, the first time anyone except the founder was able to enter the governing structures of the company. The second move, related to the first, was to redirect funds obtained in this way into purchase of Hermes SoftLab⁽²⁾, thus doubling its size and shoring up its expertise in software engineering field. The process of integration of two peers with different strengths and weaknesses began immediately, and according to company sources will take up to 2 years to complete.If successful, the integration will create a regional IT giant with good leverage for negotiating outsourcing agreements with American and European software firms. However, it is too early to judge the results just yet.

ComTrade Group brands

ComTrade Computer

The first locally assembled PC in South Eastern Europe, ComTrade Computer was originally launched in 2003 and it met mixed results. Despite the strength of mother company and international quality certifications that the product featured, the market reacted in a reserved way and sales didn’t meet initial expectations, although they were not disastrous, either. The reason for this is probably the tendency of the buyers in the region to opt for lower price even when it means uncertainty of illegally imported goods. ComTrade Computer was withdrawn from the market in 2005, only to be introduced again in 2007⁽³⁾ with new visual identity and slogan “You know it”. Currently, ComTrade offers three models for home users (ComTrade ConneCT, ComTrade ImpaCT and ComTrade PerfeCT), as well as two business models (ComTrade Virago and ComTrade Zephyr).

Crypton

Crypton is a brand powered by ComTrade covering products from consumer electronics segment. It includes several product categories (LCD TV sets, air-conditioners, portable media players, GPS navigation devices) and a variety of models in each category. Started in 2006 as economy brand aimed at lower strata of consumer population, Crypton quickly exceeded all plans and became popular among young, urban population throughout the region⁽⁴⁾. Products are advertised in easygoing style under the slogan: “Living is easy”.ComTrade Group also owns a chain of gaming establishments named “Planet Crypton” that is related to the consumer electronics brand by the fact that Crypton LCD TV’s are used as monitors for gaming consoles.

Coper

The least known of ComTrade brands, Coper includes IT accessory products such as printer cartridges and connector cables. It is expected for the brand to expand and include more products in the future.

=Corporate culture and public

pearhead of Serbian economy

ComTrade is among Serbian companies which were able to gain international recognition despite unfavorable conditions in the local market. In contrast to many of the largest Serbian companies, it was not formed out of privatized state-owned organization; it was started from scratch and recorded organic growth throughout its existence. It is generally perceived as a non-compromising player in the market, always looking for the next competitor to swallow, but it is also regarded as a good company to work for or cooperate with. It is by far the largest IT company in Serbia and among top 10 or 20 of largest companies in the country overall⁽⁵⁾.ComTrade took a highly controversial move by acquiring the Slovenian software giant Hermes SoftLab, as two nations had a brief armed conflict in 1991 and investment of Serbian capital in Slovenia is still a pioneering job. However, the move ended up being a public relations success, as media sang almost unanimous praises and presented ComTrade as a rational company not afraid to deal with political realities and extend a hand of reconciliation.

truggle against illegal imports and pirate software

From its earliest days, the core of ComTrade achievements were distribution contracts with high-profile IT vendors. This kind of cooperation forced ComTrade to think within a legal framework in a time when “grey-zone” economy was flourishing in the region. This constellation of factors made ComTrade a fierce fighter against piracy and smuggling, as their profits directly depended on the outcome of this fight⁽⁶⁾These efforts yielded only limited results. ComTrade and a handful of other IT companies did set the quality bar higher and provided an alternative for those who are willing to oblige the law, but level of unlawful sales remains rampant and requires coordinated actions from governmental structures to be resolved.

Investment in young talent

The vast majority of ComTrade Group employees are younger than 40, and age is an important factor in the assessment of a potential candidates. Also, company sponsors many extraordinary young people by the means of financial support for scholarships and study visits around the world–the rational is to establish ties with young prodigies as soon as possible in order to prepare them for serious recruitment. There are numerous examples of sponsored students joining ranks of ComTrade after they finished their education.Besides this, ComTrade regularly organizes open-house programs for high school and university students under the name ComTrade Open Day⁽⁷⁾. So far, this manifestation was held 6 times and aroused great interest from future IT professionals. Another popular event sponsored by ComTrade Group is a Serbian competition for World Computer Games, a worldwide gaming contest.ComTrade also frequently assists schools and various education programs, mostly by donating equipment.

tructure of the company

Distribution companies within ComTrade Group

*CT Computers–Serbia
*CT Computers–Croatia
*CT Computers–Bosnia & Herzegovina
*CT Computers–Albania
*CT Computers–Bulgaria
*CT Computers–Macedonia
*CT Computers–Montenegro

IT Solution companies within ComTrade Group

*Spinnaker New Technologies
*DNC Spinnaker
*Spinnaker U.S.A.
*ComTrade M.E.
*Hermes SoftLab Slovenia
*Hermes SoftLab Serbia
*Hermes SoftLab Ireland
*Hermes SoftLab Germany
*Hermes SoftLab Austria
*Hermes SoftLab Bosnia & Herzegovina
*Hermes SoftLab France

IT retailing companies within ComTrade Group

*CT Retail–Serbia
*CT Retail–Bosnia & Herzegovina

References

⁽¹⁾http://www.b92.net/galerija/index.php?lang=english&nav_category=99&yyyy=2007&mm=10&page=6
⁽²⁾http://www.blic.co.yu/temadana.php?id=37621
⁽³⁾http://www.novosti.rs/code/navigate.php?Id=5&status=jedna&vest=110013&datum=2007-10-19
⁽⁴⁾http://www.pcmagazin.co.yu/2007/08/02/novo-u-comtrade-shopu-crypton-familija-proizvoda/
⁽⁵⁾http://www.b92.net/biz/fokus/intervju.php?mm=01&nav_id=228697&yyyy=2007
⁽⁶⁾http://www.b92.net/biz/fokus/analiza.php?bryyyy=2008&mm=05&nav_id=300330&version=print
⁽⁷⁾http://www.economy.rs/elektronsko-poslovanje/3373/Comtrade-Open-Day-6---Real-IT--.html

External links

* [http://www.comtrade.co.yu/]
* [http://www.hermes-softlab.com/]
* [http://www.mycrypton.com/?chlngx=en]
* [http://www.comtradeshop.com/]