WESCO International Competition
Now Viewing WESCO International's competition in: Industrial Supply Wholesalers (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What major industries does the company sell to? - Distributors often have industry concentrations.
What percentage of its business does the company get from its 10 largest customers? - Some companies can depend highly on a few large customers.
How many of the company's supply contracts are with large customers? - Large customers may negotiate a discount in exchange for a minimum volume of business.
Do most customers also buy from competing wholesalers? - Many customers prefer to have alternate sources of supply.
How does the company compete with larger competitors in the region? - Small companies can carry niche products and provide personalized service and faster delivery.
How does the company acquire new customers? - Company visits; catalogs (direct mail); telemarketing; and trade shows are common marketing tools.
How many catalogs does the company mail each year? - Large companies may mail a large number of catalogs.
Competitive Landscape
Demand is closely tied to the level of US manufacturing production. Because many operating costs are fixed, profitability depends on operational efficiency, particularly inventory management. Smaller companies can compete effectively by providing specialized supplies or superior service (delivery service and product expertise). Large distributors with a network of warehouses and outlets can maintain a lower inventory/sales ratio. The industry is highly automated: average annual revenue per worker is close to $775,000.
Business Challenges
CRITICAL ISSUES
Dependence on Manufacturing - Demand for industrial supplies depends on manufacturing activity. During the late 2000s recession, US industrial production fell about 15 percent. More US manufacturing capacity is expected to move to lower-cost countries like Mexico and China.
Industry Concentrations - Many distributors serve only customers in a particular industry, exposing distributors to greater demand volatility. Smaller wholesalers often get a large percentage of business from a few large customers or from customers in the same industry. Specialty line companies are especially vulnerable to a business slowdown in a particular industry or geographical area.
Industries Where WESCO International Competes
- Electronics
- Electrical Products
- Electrical Products Distribution(primary)
- Electrical Products
- Computer Services
- Computer Products Distribution & Support
- Industrial Manufacturing
