Industry Analysis & Industry Trends
Aggressive price discounting and the rapid ascent of online purchases for 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 1.9% in the five years through 2013-14. 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 2013-14, industry revenue is forecast to rise by 1.5% to reach $4.6 billion. Growth in disposable income and an increase in the number of households with at least one computer will underpin a modest recovery... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in the decline phase of its life cycle. In the 10 years through 2018-19, industry value added (IVA), which measures an industry's contribution to the economy, is forecast to decline at an annualised 1.8%, compared with forecast annualised growth in Australian GDP of 2.5% over the same period. In general, industries that operate in the decline stage of their life cycle demonstrate slow IVA growth relative to the overall economy. The weak performance can be attributed to the erosion of product margins due to moderate levels of competition across the industry and from external operators. Increasing competition, both internal and external (particularly from online retailers), reduced the trading viability of certain industry players... purchase to read more