This preview shows page 1. Sign up to view the full content.
Unformatted text preview: e 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. Chain stores and computer superstores: these include major chains such as Costco, Circuit
City, BestBuy, etc. They are almost always more than 10,000 square feet of space, usually
offer decent walk-in service, and are often warehouse-like locations where people go to ﬁnd
products in boxes with very aggressive pricing, and little support. 3. Online/Catalog: the market is served increasingly by businesses such as Tiger Direct, Tech
Depot, etc., that offer aggressive pricing of boxed product. For the purely price-driven buyer,
who buys boxes and expects no service, these are very good options. 4. Others: there are many other channels through which people buy their computers, usually
variations of the main three types above.
4.2.1 Market Needs Since our target market is the service seeker, the most important market needs are support, service,
training, and installation, in that order. One of the key points of our strategy is the focus on target
segments that know and understand these needs and are willing to pay to have them ﬁlled.
All personal computer users need support and service. The self reliant ones, however, supply those
needs themselves. In home ofﬁces, these are the knowledgeable computer users who like to do it
themselves. Among the businesses, these are businesses that have people on staff.
4.2.2 Market Trends
The most obvious and important trend in the market is declining prices. This has been true for years,
but the trend seems to be accelerating. We see the major brand-name manuf...
View Full Document
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