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Home > Consumer Products > Consumer Products & Retail > Retail
Computer and Software Stores
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| Published Date:
August 2008
Published By:
First Research, Inc.
Page Count:
10
Order Code:
R3470-1722
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The computer and software store (computer store) industry includes about 10,000 stores with combined annual revenue of almost $20 billion. Major companies include CompUSA and GameStop. Computer manufacturers, such as Apple and Dell, also have retail operations. The industry is concentrated: the top 50 companies have 70 percent of industry revenue.
The computer store industry includes video game stores.
COMPETITIVE LANDSCAPE
Business growth, personal income, and technological innovation drive demand. The profitability of individual companies depends on effective merchandising, competitive pricing, and reliable service. Large companies have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by serving a local market, offering unique products, or providing superior customer service. Average annual revenue per worker is about $230,000.
The primary competitors for computer stores are consumer electronics stores and Internet and catalog retailers. Computer stores also compete with office supply stores, computer and peripheral manufacturers and distributors, value-added resellers, mass merchandisers, and warehouse clubs.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products sold by computer stores are computers and peripherals (65 percent of revenue); software (20 percent); parts, repair, and installation services (7 percent); and video recorders, cameras, and electronic game devices (5 percent). Other products include audio equipment, office equipment, and used or refurbished equipment. Companies may also offer technical support and training classes. Some retailers custom build PC systems.
The industry consists mainly of national and regional chains, along with independent retailers. ...
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