For 27 years, the Japanese printer vendor presence in Australia was closely associated with one man - entrepreneur Stead Denton. Last year Denton's company, IPL Group, sold its 30 percent stake in the local branch back to the parent.
The decision to sell came after increased competition from other vendors started eating into the profitability of the local business, says Denton.
"We punched above our weight - we managed to maintain our market share as in other developed countries so we did ok. But to compete it's difficult. We have to trade as an independent company and be profitable locally. That's why I suggested they come here.
"I said to [head office] last year, all of my competitors are factory subsidiaries. I think factory subsidiaries, their principle concern is to keep the factory turning.
"They were prepared to leave me here forever, I guess, but it wouldn't be fair to them. They've been very kind to me for the past 20 years, me volunteering to step aside was the least I could do."
Now back in the hands of the parent company, the local arm can take more longer term strategies in government and corporate, says Denton. "They could decide, like my competitors do, that they could take a strategic decision. Distributors don't have that luxury - you can't do it and remain viable."
Oki establishing its own presence in Australia is going to be significant, says Denton.
"I'm convinced that their market position and market share will certainly strengthen. The guy they sent over to be managing director, [Takaaki] Hagiwara, we refer to him as Huggy, will lead Oki into bigger and better things. Oki is a major player, particularly in Europe and Japan. Their technology is pretty good. They will survive."
Hagiwara, who used to run the Singapore operation, has moved to Australia to oversee its expansion.
Read on for the Panasonic deal.
Issue: 276 | February, 2010