Computer Manufacturing Industry Analysis Essays
a. Definition of the Industry
The following study presents a brief analysis of the Computer and Electronic Manufacturing Industry in the USA (NAICS 334 – North American Industry Classification System) with special focus on the Personal Computer’s sub-sector. I made the decision to focus on just one of the sub-sectors due to the large scope of the general industry.
“Industries in the Computer and Electronic Product Manufacturing subsector group establishments that manufacture computers, computer peripherals, communications equipment, and similar electronic products, and establishments that manufacture components for such products.” (Bureau of Labor Statistics)
Given the previous description of the general …show more content…
- “Computer manufacturing and design also require highly-educated employees” (IBIS World 2012), these are very hard to find, especially in the same area of the business offices.
- “As a result of offshoring by US-based companies and increased competition from international firms, domestic manufacturing activity has declined”. (PR Web 2012)
- The demand for the Computer Industry is tied to consumer and business income, so it’s very sensitive and variable.
2. Customer Analysis
The total domestic (US) annual demand for the industry by the end of 2011 was US$62.2 billion.
“The industry's woes cannot be blamed on a lack of demand. In fact, the share of US households that owns at least one computer increased by 7.5 percentage points from 2007 to 2012. While demand has grown, fierce competition and widespread product homogeneity (the result of computers being assembled from standardized components) have led to falling prices and profit margins” (PR Web 2012)
The identified target markets/segments for the Computer Manufacturing Industry are the following:
1. Large corporate customers (B2B) – Big companies
2. Small and medium size businesses (B2B) – Who represent about 20% of U.S. sales
3. Individual Customers and Consumers (B2C) – Who represent about 10% of U.S. sales
4. Public sector (government and educational) customers.