Data Storage Systems Manufacturing
Competitive Landscape
Demand is driven by spending levels in the consumer and enterprise computing markets. The profitability of individual companies depends on operational efficiency and rapid product development. Large companies have advantages in development and marketing budgets, component purchasing power, and sales reach, as well as their ability to offer more comprehensive product lines. Because they typically serve a broader customer base, large companies may also be less vulnerable to declines in individual customer segments. Small companies can compete effectively by identifying underserved markets or providing superior technology. The industry is capital-intensive: average annual revenue per worker is about $500,000.
Opportunities
Enterprise Data Proliferation - Corporate data centers continue to expand as businesses generate massive amounts of data in the form of digital records, e-mail, and other documents. The build-out...
Business Challenges
Variable IT Spending - Purchases of data storage systems are closely tied to those of computers, demand for which can rise or fall dramatically over short periods. Profitability depends...