Essay on Electronic Component Industry Analysis

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INTRODUCTION

The electronics distribution industry is inherently a volatile one because it is based on technologies that are constantly evolving and improving as time passes. The industry has already survived three major technological revolutions and can probably be expecting another one in its long-term future. These "revolutions" usually concern the refinement or replacement of a component that is fundamental to all electronic circuitry. While demand for related component parts remains relatively stable, the revolutionized component becomes a high demand item (product growth) and all other circuit design considerations will revolve around it. This in turn causes an increased focus on the item in the distribution industry, and the
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For the remaining small distributors, there is a need for both of these attributes, as well as an aggressive desire to survive and grow. The following analysis will discuss the industry in terms of its definition, its market, its economic environment, and the important trends that will affect it. I. THE INDUSTRY
The definition of the electronics distribution industry is not difficult. Basically any entity who purchases electronic components solely for resale purposes is an electronics distributor. Although many hardware stores maintain respectable electronics inventories, they deal mostly with maintenance and repair operations (M.R.O.'s) and household consumers, and do not compete in the O.E.M. markets. The major participants in the industry are involved only in the procurement and resale of electronic components, and do not deal in other durable goods. Officially, the industry is defined by Standard Industrial Classification code 5065, Electronic Parts and Equipment, Not Elsewhere Classified. This is a subclassification of code 506, Electrical Goods. It includes establishments primarily engaged in the wholesale distribution of electronic components including but not limited to capacitors, coils, condensers, connectors, diodes, electronic tubes, miniature lamps, power supplies, resistors, semiconductor devices, transformers, and transistors. This listing is not all-inclusive but instead
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