Some Highlights:
- There is no such thing as a McITAD with widespread presence due to lack of worldwide geographic coverage.
- There’s no single player with a processing location in every country in the world.
- A concept called “coopetition” exists where direct competitors use each other to support their operations wherever necessary.
- It is unlikely that ITAD companies have operations in 70 countries due to logistical challenges of doing so.
Todd’s assessment:
At Gartner, seven or eight years ago, I did a presentation where I said there’s no such thing as McITAD? Because McDonald’s pretty much everywhere around the world. But even if you look at McDonald’s footprints, right, they’re not in every single part of the world, and they probably have the largest, I think them in subway are probably the biggest restaurants as far as footprint and geographic coverage.
So there is no McITAD, there is no one out there that literally has a processing location where they can bring it in themselves to do all the work themselves, at least within a reasonable time frame. You may be able to import or export, but good luck trying to have operations in Russia and Iraq and Iran, and even Israel is a challenging market as well. Or even try to export out of those maybe to move out of Russia and move into Europe. That’s not going to happen in today’s world for sure. So my answer would be no, there isn’t a single player that has a dot on a map in every single country around the world.
Everybody does what I call coopetition. There are times when direct competitors may use each other because it’s going to give them a good solution and then there may not be a certified processor in whatever country you may be looking at, one of these small outlying countries to where the only way a “Todd Zegers ITAD company” can give you reliable service in Iran, for example, is to go into their competitor, may be it’s SIMS or TESS or Ingram Micro, because they are the only ones I trusted to do things right with those certifications in that country where the ITAD company does not have an operation. So there’s always a little bit of soft pollination or coopetition as I like to call within our space for sure.
Again, if you’re in the US and maybe you’ve got a presence in the UK and Singapore, there’s probably 1,000 companies that could represent all three of those geographies. But if you’re in 70 countries, highly unlike that everyone’s going to have actual direct coverage in those places.