Unformatted text preview: ain stores and computer superstores: these include major chains such as Costco,
CircuitCity, 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 TechDepot,
TigerDirect, 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.
4.3.1 Industry Participants 1. The national chains are a growing presence. CompUSA, Computer City, Incredible Universe,
Babbages, Egghead, and others. They beneﬁt from national advertising, economies of scale,
volume buying, and a general trend toward name-brand loyalty for buying in the channels as
well as for products. 2. Local computer stores are threatened. These tend to be small businesses, owned by people
who started them because they liked computers. They are undercapitalized and undermanaged. Margins are squeezed as they compete against the chains, in a competition based
on price more than on service and support. Page 9 HURDLE: THE BOOK SP2.12 ON BUSINESS PLANNING 4.3.2 Distribution Patterns
Small Business target buyers are accustomed to buying from vendors who visit their ofﬁces. They
expect the copy machine vendors, ofﬁce products vendors, and ofﬁce furniture vendors, as well as the
local graphic artists, freelance writers, or whomever, to visit their ofﬁce to make their sales.
There is usually a lot of leakage in ad-hoc purchasing through local chain stores and mail order. Often
the administrators try to discourage this, but are only partially successful.
Unfortunately our Home Ofﬁce target buyers may not expect to buy from us. Many of them turn
immediately to the superstores (...
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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