Industry Analysis & Industry Trends
Aggressive price discounting and the rapidly increasing popularity of online sales of computer and software products have negatively affected the Computer and Software Retailing industry. As a result, industry revenue is forecast to decline by an annualised 2.9% in the five years through 2014-15. Intense trading conditions have caused price to remain the key basis of competition, due to minimal product differentiation between operators. The resulting downward price pressures have eroded profit margins and led to the exit of some industry players.
In 2014-15, industry revenue is forecast to rise by 1.2% to reach $5.2 billion. Growth in discretionary income and an increase in the number of households with at least one computer are projected to underpin a modest recovery... purchase to read more
Industry Report - Starting a New Business Chapter
The industry exhibits medium barriers to entry and the trend is steady. Industry concentration and competition are both medium. While the top four players account for just under 45.0% of the market, they have established considerable brand awareness among consumers. Furthermore, concentration has increased over the past five years, reflecting the growing dominance of major players already in the industry. Industry competition is driven by the broad product range and competitive pricing on offer by operators. Competition between operators has also intensified, in the race to offer consumers the lowest price and best deal available.
The industry's medium capital intensity and declining life cycle may deter new players from entering the industry... purchase to read more