Essay on Electronic Component Industry Analysis

The Retail Category I have chosen is ‘Electrical Goods’. This category consists of retailers who specialise in: Computer hardware; computer software; white goods; brown goods and audio-visual. I have

Frank Wang founded Gemini electronics in 2002. They are a United States based manufacturer of televisions. Frank’s main goal was to be able to develop an electronics firm that would be highly competitive with rival manufactures such as Samsung, Sony, and LG. With his idea he felt that his plan would allow the U.S. to be able to re-establish themselves as a major competitor strictly in the consumer electronics sector. In 2005 Gemini Electronics became a public entity.

Operating such dynamic distribution centers is usually very expensive and allows possibilities of product wastage. The high capital requirement to run such large distribution centers produces a natural barrier to entry and smaller firms frizzle out if they try and compete with the larger firms.

 Our objective is to analyze the distribution network in order to minimize annual system wide costs that subject to a 95% customer service level for ALKO. Integrated Minds considered a scenario approach and looked at net present values to factor inventory costs and quality over the planning horizon.

Therefore this industry is a pretty good one to already be in, but would be very tough to try and break into. Since established firms do not have to worry about threat of entrants or substitution, they can focus on making their core business practices cost efficient and profitable. Although firms have to deal with high buyer and supplier power, every firm has to deal with these issues. Therefore this leaves only rivalry to compete on, which forces firms to stay sharp, observe the competition, and provide excellent service to the firm’s customers to generate profit.

1. Describe the current distribution system of the company and explain why it is so important for its brand positioning? Please explain also how the brand is positioned on international markets.

Distribution: Specialized distributors that can increase awareness of target audience at a lower variable cost than generalist wholesaler; specialized stores are significant influencers of target customer’s behaviors

The stiff competition leads to customers having strong bargaining power. Customers can choose the product based on cost, quality, availability, and performance specifications. This is evident as switching costs are low for customers as it is as easy as choosing General Electric products over Emerson products. Emerson must continuously enhance its position in these dimensions to create and enhance its name in global marketplaces, and

This Industry Analysis is on Technology Consulting and Outsourcing Services. Focusing on companies providing Global IT consulting services in this industry. This report will provide industry financial projections, competitors market capitalization, market share, and challenges.

Selection of distribution locations that can give a suitable place for customers to purchase company products is a very important way to enhance the distribution advantage. Reliable delivery timing is another point that Siemens can build on to create the needed differentiation through distribution. As Siemens depend on partners in many locations all over the world to perform the task of distributing its products, providing the needed training and support for those partners can help to enhance the distribution differentiation over competitors.

The Semiconductor Manufacturing Industry The specific industry that will be referred to will be the semiconductor manufacturing industry. This industry emerged after World War II, first in the Boston area and then moved westwards into California during the 1950s. Reasons for locating in such areas include flat land, temperature, stable economy, steady government scene, accessible to markets, available raw materials and high skilled labour. Because the industry is high tech it has meant that these factors are decreasing in importance and factors such as the environment, government assistance and cleanliness are changing the pattern of semiconductor manufacturer locations.

Two college roommates, Nelson Jones and Dave Verden, started Jones Electrical Distribution (JED) in 1999. JED acts as the middleman, purchasing products from manufacturers and selling to general contractors and electricians. JED purchases products, ranging from controllers to signal devices and fuses, from nearly 100 different suppliers. JED’s customers mostly use the products purchased in the construction and repair of commercial and residential buildings. As a result, JED’s sales follow the seasonality of its customers’ businesses, which are most active in the spring and summer months.

Semiconductor industry is relatively a new field as compared to other fields of technology and merely consists of several decades. It has been showing substantial growth since past 40 years with global sales increasing at a compound rate of 9% p.a. With all the technological advancements taking place every day, it is one of those very few industries which haven't sustained major losses in the times of depression. Although it does shows cyclic nature like any other industry however the downturns and uplifts have a moderate nature. This is the reason why economic crunch of 2001 and 2009 were not a major blow for semiconductor sector. And in present era of recovery, the industry is showing growth.

|the industry and its challenges it is important to understand its various phases of growth so far. |