They say they tried offering services and that buyers

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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.

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