Computer & Software Stores
Competitive Landscape
Business growth, personal income, and technological innovation drive demand. The profitability of individual companies depends on effective merchandising, competitive pricing, and reliable service. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by serving a local market, offering unique products, or providing superior customer service. The industry is labor-intensive: average annual revenue per worker is about $130,000.
Opportunities
Technical Services - Computer stores can leverage growing demand for technical services, as computers become a more integral part of household and business operations. Repair and recovery services...
Business Challenges
Falling Retail Prices - Rapidly declining retail prices for computers, peripherals, and software can squeeze margins, even when companies account for decreasing manufacturer prices. Intense competition and consumer demand...