Xylan renews market share attack

Xylan yesterday renewed its aggressive strategy to progressively acquire its competitors' market shares while pushing towards its goal to become a $1 billion company by the year 2001.

According to Michael Ang, Xylan's Asia Pacific vice president, the company is combining a strong, channel-focused strategy with competitive pricing and technology offerings to succeed in the otherwise economically difficult Asia Pacific markets.

"We believe we are well positioned to take away customers from Bay, Fore, Cisco and 3Com," Ang said. "We're not doing it by acquiring different technology or other companies, it's the same technology [we are using] and we are stretching it." Speaking at Xylan's second Asia Pacific Partners Meeting here, Ang said networking vendor brand names are less of a purchasing criteria as a result of the Asian crisis, presenting the company with new opportunities to promote its own feature sets.

Rene Arvin, Xylan's vice president of worldwide sales, told delegates the company is working to improve its partnerships with key original equipment makers and resellers.

Arvin estimated Xylan will ultimately work with no more than 20 channel partners around the world. "We will not over-distribute our product," he said.

Another key plank in Xylan's strategy is its plan to develop new technical response centres (TAC) in Japan, Korea, China, South East Asia, Singapore and Australia.

Xylan is investing $2 million in the Singapore TAC, touted as the APAC region's hub, while the company's Australian TAC is also expected to play a significant role. Both TACs are expected to be completed by Q1, 1999.

Meanwhile, Xylan reports it continues to maintain an average of 10 per cent growth per quarter. The company achieved revenues of $210 million in 1997, while Ang predicts Xylan will achieve $350 million in revenue for 1998. He said this result supports CEO Steve Kim's ambition to make Xylan a $1 billion company by the year 2001.

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