Insight Enterprises, Inc.Tempe, AZ, United States (NASDAQ (GS): NSIT)

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Insight Enterprises Competition

Now Viewing Insight Enterprises's competition in: Computer and Software Stores (primary)

Call Preparation Questions

Customers, Marketing, Pricing, Competition

How does the company create customer loyalty in such a competitive industry? - By providing specialized technical support or personalized customer service, companies can develop a relationship beyond the initial purchase.

How does the company market to women and other non-traditional customers? - Computer retailers can better target women by focusing on Internet and email applications. In addition, video game stores may stock titles with cross-gender appeal or new versions of old games.

Who are the company’s typical customers? - The typical customer is between 30 and 59; commercial customers include small businesses, state and local governments, and schools.

What are the company’s most effective marketing and promotional vehicles? - Marketing and promotional vehicles include newspaper, print, radio, TV, instore, and Internet advertising; catalogs; and direct mail.

How important are manufacturer cooperative funds? - Companies may use cooperative allowances from suppliers to fund marketing programs.

What are some of the company’s most effective price promotions? - Due to the competitive nature of the industry, companies frequently offer rebates and price promotions.

What resources does the company dedicate to group sales? - Companies may dedicate sales resources to corporate, government, or education customers.

How does the company provide customer support? - Companies may offer help through onsite technicians, emergency response teams, call centers, or the Internet.

What role does the Internet play in the company’s marketing plan? - Many companies have Internet sites that offer product, rebate, and store information. Through websites, companies may offer special web-only pricing, products not available at retail locations, and ability to place advance orders.

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.

Business Challenges

CRITICAL ISSUES

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 for affordability have resulted in falling price points. In a recent five-year period, retail prices for computers and peripherals decreased over 50 percent, 25 percent for software and accessories. Low retail prices have driven industry growth by making computers and peripherals more accessible to consumers and small businesses.

Competition from Alternative Channels - Computer stores face intense competition from a variety of sources, including consumer electronic stores, Internet retailers, computer and peripheral manufacturers, and office supply stores. As the general population becomes more computer-literate, customers require less help in making buying decisions, allowing a broader range of retailers to compete. Consumer electronics and Internet retailers are among the top sellers of computers and related products. Manufacturers like Apple and Dell can offer a wider selection of brand-specific products with the latest technology, and typically have highly trained sales staff and strong technical support.

Industries Where Insight Enterprises Competes

  • Retail
    • Computer & Software Retail(primary)
  • Business Services
    • Advertising & Marketing
  • Computer Services
    • Computer Products Distribution & Support

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