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Unformatted text preview: acturers putting systems
together with amazing specs—more power, more speed, more memory, more disk storage—at
amazing prices. The major chain shops are selling brand-name powerful computers for less than
This may be related to a second trend, which is the computer as throw-away appliance. By the time a
system needs upgrading, it is cheaper to buy completely new. The increasing power and storage of a
sub-$1000 system means buyers are asking for less service.
A third trend is ever greater connectivity. Everybody wants onto the Internet, and every small ofﬁce
wants a LAN. A lot of small ofﬁces want their LAN connected to the Internet. Page 8 SAMPLE PLAN: AMT, INC. SP2.11 4.2.3 Market Growth
As prices fall, unit sales increase. The published market research on sales of personal computers is
astounding, as the United States market alone is absorbing more than 30 million units per year, and
sales are growing at more than 20 percent per year. We could quote Dataquest, Infocorp, IDC, or
others; it doesn’t matter, they all agree on high growth of CPU sales.
Where growth is not as obvious is the retail market. A report in CRW says Dell is now selling $5
million monthly over the Web, and we assume Gateway and Micron are both close to that. Direct mail
has given way to the Web, but catalogs are still powerful, and the non-retail sale is more accepted
every day. The last study we saw published has retail sales growing at 5% per year, while Web sales
and direct sales are growing at 25% or 30%.
4.3 Industry Analysis
We are part of the computer reselling business, which includes several kinds of businesses:
1. Computer dealers: storefront computer resellers, usually less than 5,000 square feet, often
focused on a few main brands of hardware, usually offering only a minimum of software, and
variable amounts of service and support. These are usually old-fashioned computer stores
and they usually offer relatively few reasons for buyers to shop with them. Their service and
support is not usually very good and their prices are usually higher than the larger stores. 2. Ch...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.
- Winter '09