Adaptec Competition
Now Viewing Adaptec's competition in: Computer Networking Equipment Manufacturing
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How large is the company's direct sales force? - Some manufacturers only sell directly because of higher margins and direct relationships with customers.
What types of indirect sales channels does the company use? - Companies may sell through other equipment vendors, value-added resellers, or wholesale and retail outlets.
What markets are the primary focus for the company? - The government, service companies, carriers, large enterprises, small-to-medium businesses, and consumers are markets for computer networking equipment.
What marketing activities has the company found most effective? - Marketing to businesses consists primarily of advertising in trade magazines and participating in industry trade shows.
How does the company promote its brand identity? - Larger companies build their brand by acquiring stadium naming rights, sponsoring golf tournaments, and advertising on TV.
What are typical prices for the company's products? - Depending on configuration, switches cost as much as $20,000; routers can cost more than $100,000.
Competitive Landscape
Demand is driven by economic growth as enterprises and service providers expand networks to meet increasing user needs, and by the superior performance of new equipment, which encourages replacement of existing equipment. Profitability of individual companies depends on timely development and delivery of products in high volumes for large customers. Large companies have advantages in economies of scale in broad product offerings and services. Small companies can successfully compete by designing and developing products that meet highly specialized needs. The industry is capital-intensive.
Full Industry Overview For Computer Networking Equipment Manufacturing
Business Challenges
CRITICAL ISSUES
Growth Raising Internet Architectural Issues - As potentially billions of new entities are added to the Internet, architectural and topological issues are becoming more of a concern. Older routers connecting sub-networks are approaching their table limits on the number of entities, and current growth rates could press even the most technologically advanced routers. While the Internet Engineering Task Force (IETF) is searching for architectural solutions, large customers are reluctant to invest in new equipment that may have to be replaced near-term.
Competition from Foreign Suppliers - Because telecom services are being standardized throughout the world, equipment makers for foreign markets can also sell their products to US service providers. Many of the largest equipment competitors in the US market are based overseas, including Alcatel-Lucent, NEC, Nokia, and Siemens. Many foreign companies target the US because it's the largest telecom market in the world.
Industries Where Adaptec Competes
- Computer Hardware
- Computer Networking Equipment
- Storage Networking Equipment(primary)
- Computer Networking Equipment
- Electronics
- Semiconductors
- Microprocessors, Microcontrollers & DSPs
- Semiconductors
