Computer Manufacturing
Competitive Landscape
Demand is tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies have economies of scale in purchasing and production. Small companies can compete successfully by specializing in certain products or by developing superior technology. The industry is capital-intensive: annual revenue per employee is about $460,000.
Opportunities
Multiple Processors - Because processor costs are low, designers are producing machines with multiple processors to handle simultaneous tasks such as image processing. With "wider" processor power, computers...
Business Challenges
Computer Upgrades Easy to Postpone - Sales of computer equipment depend on rising consumer income and corporate profits. Although consumers and businesses typically replace computers every few years, they can easily...