Digi-Key Competition
Now Viewing Digi-Key's competition in: Electronic Components & Semiconductor Wholesalers (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How many customers does the company have? Who are the major customers? - Distributors often have thousands of customers. Avnet sells to 100,000 customers.
Does the company have overseas customers? - The distribution business is international, as many electronics assembly operations are located overseas.
What is the typical time from order to delivery fulfillment? - Because of long lead-times and changing consumer tastes, demand and supply are frequently out of balance.
What is the company’s annual inventory turnover? - A large wholesaler may turn inventory four to eight times per year.
Which products turn over fastest? -
Does the company have a different marketing strategy for different lines of business? -
How are orders taken from customers? - Examples include electronic data interchange (EDI); phone; fax; or Internet.
Who are the company’s major competitors? -
Does the company operate an Internet ordering site? - Internet sites can provide easy customer service and a complete catalog of available products. But the cost of operating a website can be high.
Competitive Landscape
Demand for electronic components is driven largely by business and consumer purchases of computers and telecommunications equipment. The profitability of individual companies depends on business volume and correct merchandising, or stocking the products buyers want. Large companies have advantages through buying in high volume at discounted prices, more-efficient inventory management, and the ability to fulfill large customer orders. Small wholesalers can compete by offering specialized products or better service.
Full Industry Overview For Electronic Components & Semiconductor Wholesalers
Business Challenges
CRITICAL ISSUES
Demand Depends on Cyclical Computer Manufacture - Demand for electronic components depends directly on demand for computers and other electronic devices, which can change rapidly. For example, US component production grew 60 percent per year for many years, but growth slowed during the recessions in the early 2000s and the late 2000s. With more US electronics manufacture moving abroad, US demand for electronic components may never regain the former level of growth.
International Trade Risks - The large international scope of the electronics industry creates potential problems for distributors through government regulation of imports and exports, the fluctuating value of currencies, and potential disruption of commerce due to political events. Annual US exports of electronic components, worth over $45 billion, are mainly to computer assembly plants in Mexico, Malaysia, Korea, Canada, the Philippines, and Taiwan.
Industries Where Digi-Key Competes
- Electronics
- Electronic Components
- Electronic Component Distribution & Support(primary)
- Electrical Products
- Electrical Products Distribution
- Electronic Components
