Mod 2 Computer Stores in the US and Industry Growth Presentation Mod 2 SLP Create Power Point In the second Session Long Project, you will create a PowerP

Mod 2 Computer Stores in the US and Industry Growth Presentation Mod 2 SLP Create Power Point In the second Session Long Project, you will create a PowerPoint Presentation of the industry that you chose and will focus on the “Major Companies” in the industry. You will see a tab titled “Major Companies” that you will use to gather your information. Submit a PPT file with a minimum of 5 slides that address the following: plus title and reference pages Conduct some research using https://www.ibisworld.com and discuss the “Major Companies” in the industry.Add Images/Charts/Graphs (as applicable).You can also conduct some outside research to add to your PowerPoint presentation on each Major Player.Please cite imags, as well DoTitle page and Reference Page Be creative! Use some of the tips that you learned from the background materials on how to engage your audience with your presentation. Additional resource for using PowerPoint Computer Stores in the USApril 2019   1
WWW.IBISWORLD.COM
On the line: High external competition will
impede industry growth
This report was provided to
Trident University (2132988619)
by IBISWorld on 01 May 2019 in accordance with their license agreement with IBISWorld
IBISWorld Industry Report 44312
Computer Stores in the US
April 2019
Anna Miller
2
About this Industry
14 International Trade
24 Revenue Volatility
2
Industry Definition
15 Business Locations
25 Regulation and Policy
2
Main Activities
2
Similar Industries
17 Competitive Landscape
2
Additional Resources
17 Market Share Concentration
26 Key Statistics
17 Key Success Factors
26 Industry Data
3
Industry at a Glance
17 Cost Structure Benchmarks
26 Annual Change
19 Basis of Competition
26 Key Ratios
4
Industry Performance
20 Barriers to Entry
27 Industry Financial Ratios
4
Executive Summary
20 Industry Globalization
4
Key External Drivers
6
Current Performance
21 Major Companies
8
Industry Outlook
21 Apple Inc.
10 Industry Life Cycle
25 Industry Assistance
28 Jargon & Glossary
22 Micro Electronics Inc.
22 SWS Computers
12 Products and Markets
22 Intrex Inc.
12 Supply Chain
12 Products and Services
23 Operating Conditions
13 Demand Determinants
23 Capital Intensity
14 Major Markets
24 Technology and Systems
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com
Computer Stores in the USApril 2019   2
WWW.IBISWORLD.COM
About this Industry
Industry Definition
This industry includes operators that mainly
retail desktops, notebook computers and
software, as well as accessories such as
printers, scanners and keyboards. These
Main Activities
The primary activities of this industry are
goods are generally purchased from domestic
and international manufacturers and
wholesalers and then sold to end consumers,
including households and businesses.
Retailing computers
Retailing computer peripherals (e.g. printers, monitors, keyboards, mice and speakers)
Retailing computer software
The major products and services in this industry are
Desktop computer sales
Laptop computer sales
Software
Other electronics
Similar Industries
33411a Computer Manufacturing in the US
Operators in this industry manufacture computer products.
45112 Hobby & Toy Stores in the US
Operators in this industry retail new electronic toys, such as video games and handheld electronic games.
45321 Office Supply Stores in the US
Operators in this industry retail new computers, computer peripherals and prepackaged software as well as
new office equipment, office furniture and office supplies.
81121 Electronic & Computer Repair Services in the US
Operators in this industry provide computer repair services without retailing new computers.
Additional Resources
For additional information on this industry
www.acrbo.com
Association of Computer Repair Business Owners
www.nrf.com
National Retail Federation
www.census.gov
United States Census Bureau
Provided to: Trident University (2132988619) | 01 May 2019
WWW.IBISWORLD.COM
Computer Stores in the US April 2019  
3
Industry at a Glance
Computer Stores in 2019
Key Statistics
Snapshot
Revenue
Annual Growth 14–19
Annual Growth 19–24
Profit
Wages
Businesses
$26.3bn
-2.1%
$1.6bn
$2.1bn
Per capita disposable income
Revenue vs. employment growth
Market Share
Apple Inc.
4.6%
10
4
2
0
% change
% change
5
-5
-10
-20
p. 21
0
-2
-15
Year 11
-0.3%
7,675
13
Revenue
15
17
19
21
23
25
-4
Year
12
14
16
18
20
22
24
Employment
SOURCE: WWW.IBISWORLD.COM
Products and services segmentation (2019)
Key External Drivers
12.6%
Per capita disposable
income
Other electronics
41.7%
E-commerce sales
Laptop computer sales
Private investment in
computers and software
20.5%
Percentage of
households with at
least one computer
Software
External competition
for the Computer
Stores industry
Price of computers and
peripheral equipment
25.2%
p. 4
Industry Structure
Desktop computer sales
Life Cycle Stage
Revenue Volatility
Capital Intensity
Decline
SOURCE: WWW.IBISWORLD.COM
Regulation Level
Light
Low
Technology Change
Low
Low
Barriers to Entry
Low
Industry Globalization
Low
Competition Level
High
Industry Assistance
None
Concentration Level
Low
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 26
Provided to: Trident University (2132988619) | 01 May 2019
Computer Stores in the USApril 2019   4
WWW.IBISWORLD.COM
Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive Summary
The Computer Stores industry comprises
establishments that primarily retail
computers and peripheral equipment such
as keyboards, software, printers, scanners
and other accessories. Industry revenue
has declined over the five years to 2019
despite growing consumer spending, an
increase in private investment in
computers and software and an increasing
rate of computer ownership among
households. Industry operators have
struggled to compete with external
sources of competition, which include
computer manufacturers, software
developers, e-commerce retailers and
large consumer electronics stores. Over
the five years to 2019, industry revenue is
estimated to decline at an annualized rate
of 2.1% to $26.3 billion, including a 0.5%
decrease in 2019 alone. Industry profit
margins are also expected to decrease over
the five years to 2019.
The number of industry enterprises
has declined over the past five years. The
industry suffers from a high level of
external competition from retail outlets
that are more popular among consumers.
On a general level, e-commerce sales
have drawn revenue away from the
majority of brick-and-mortar
establishments. Alongside this, a
continual decline in the price of
computers and accessories has limited
industry revenue. Revenue growth, as a
result, has been dependent on growth in
the number of unit sales, which tends to
favor large consumer electronics retailers
who are not included in this industry. As
a result, the specialized nature of
computer stores has made it hard for
industry operators to compete. Some
have effectively exited the industry by
diversifying their product lines, making
them part of the Consumer Electronics
Stores industry (IBISWorld report
44311), while others have simply been
forced to close.
Moving forward, revenue for the
industry is anticipated to continue
declining. Over the five years to 2024,
IBISWorld projects industry revenue to
decline at an annualized rate of 0.3% to
$25.9 billion. E-commerce sales are
expected to continue to draw revenue away
from brick-and-mortar retail
establishments over the next five years.
Consumers are projected to increasingly
prefer the wealth of product information,
selection and generally lower prices offered
by making purchases online. Although all
physical retailers will see negative effects,
the specialized product selection of
computer stores in comparison with large
consumer electronics retailers, such as
BestBuy Co. Inc., will likely continue to
hurt the industry.
Per capita disposable income
Per capita disposable income determines
an individual’s ability to purchase goods
or services. When per capita disposable
income rises, consumers generally have
more income available to purchase
industry goods. Per capita disposable
income is projected to increase in 2019,
presenting a potential opportunity for
the industry.
E-commerce sales
E-commerce sales measure the total
value of retail sales conducted online in
the United States. An increase in the
value of e-commerce sales directly
drives revenue away from the Computer
Stores industry as more consumers opt
to make such purchases online. In
2019, the value of e-commerce sales is
anticipated to increase, posing a
The
specialized nature of computer stores has
made it hard for industry operators to compete
Key External Drivers
Provided to: Trident University (2132988619) | 01 May 2019
Computer Stores in the USApril 2019   5
WWW.IBISWORLD.COM
Industry Performance
potential threat for the Computer
Stores industry.
Private investment in
computers and software
Private investment in computers and
software represents the total annual
expenditure by businesses on all
information processing equipment and
software. An increase in private
investment in computers and software
increases revenue for the Computer
Stores industry by contributing to overall
higher demand for computers and related
equipment sold by industry operators. In
2019, private investment in computers
and software is anticipated to increase.
Percentage of households with
at least one computer
The percentage of households that own at
least one computer is estimatedusing
data produced by the US Census Bureau’s
Current Population Survey. Anincrease in
household computer ownership indicates
increased demand forcomputers and
periphery equipment among US
consumers, contributing to
revenuegrowth for the Computer Stores
industry. In 2019, the percentage of
householdswith at least one computer is
anticipated to increase.
External competition for the
Computer Stores industry
External competition for the Computer
Stores industry comprises brick-andmortar consumer electronics stores,
online retailers, computer manufacturers
and computer software companies who
sell computers through Original
Equipment Manufacturer agreements. In
2019, external competition for the
Computer Stores industry is expected to
continue increasing, furthering the
industry’s decline.
Price of computers and
peripheral equipment
Typically, changes in the price of
computers and peripheral equipment are
passed on to the consumer. An increase
in prices increases revenue generated per
unit for industry operators. In 2019, the
price of computers and peripheral
equipment is anticipated to decline.
E-commerce sales
Per capita disposable income
4
800
2
600
$ billion
% change
Key External Drivers
continued
0
-2
-4
Year
400
200
12
14
16
18
20
22
24
0
Year 9
11
13
15
17
19
21
23
SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2132988619) | 01 May 2019
Computer Stores in the USApril 2019   6
WWW.IBISWORLD.COM
Industry Performance
Pressure from
diversified retailers
The Computer Stores industry
comprises establishments that primarily
retail desktops, notebook computers
and software, as well as periphery
equipment such as printers, scanners
and keyboards. Strong external
competition from the Consumer
Electronics Stores industry (IBISWorld
report 44311), the Computer
Manufacturing industry (33411a) and
the Software Publishing industry
(51121) has pushed the Computer Stores
industry into decline. Industry revenue
has declined over the five years to 2019,
despite growing consumer spending and
an increase in computer ownership
among households. Revenue for the
Computer Stores industry is expected to
decline an annualized 2.1% to $26.3
billion over the five years to 2019. In
2019 alone, industry revenue is
projected to decrease 0.5%.
The Computer Stores industry is subject
to a strong level of external competition
from other retailers that sell computers,
including consumer electronics stores,
computer manufacturers and software
developers such as Microsoft
Corporation (Microsoft). The price of
computers and peripheral equipment
has consistently trended downward over
the past decade. As a result, retailers of
such products have increasingly focused
on driving a high unit volume of sales to
grow revenue. Typically, this sales
strategy tends to favor larger and more
diversified retailers that sell a range of
related electronics products. Retailers,
such as BestBuy Co. Inc. (BestBuy),
Fry’s Electronics, Target Corporation
and Walmart Inc. have been able to
leverage their brand to sell computers
and peripheral equipment at competitive
prices. In addition, these retail stores
are much better positioned to achieve
high unit sales, which has become
increasingly important as the price of
computers has fallen.
As a result, retail establishments that
primarily sell computers have had
trouble competing and struggled to
achieve the high unit sales necessary to
generate enough revenue and remain
profitable. To drive revenue growth, some
industry operators have diversified their
product offerings to include a range of
other consumer electronics products.
However, as a result, this has drawn
revenue away from the Computer Stores
industry because these retailers are then
considered to be operating in the
Consumer Electronics Stores industry.
This trend has contributed significantly
to a decline in the number of industry
operators and has significantly increased
the level of external competition.
Industry revenue
8
4
% change
Current
Performance
0
-4
-8
Year 11
13
15
17
19
21
23
25
SOURCE: WWW.IBISWORLD.COM
Provided to: Trident University (2132988619) | 01 May 2019
Computer Stores in the USApril 2019   7
WWW.IBISWORLD.COM
Industry Performance
Other sources of
external competition
Industry in decline
There are several other sources of external
competition that have weakened the
industry over the five years to 2019, one of
the most notable being e-commerce sales.
Online sales of computers have drawn
revenue away from the Computer Stores
industry, which only comprises brick-andmortar establishments. IBISWorld
estimates that e-commerce sales have
grown at an annualized rate of 13.7% over
the five years to 2019. Consumers have
increasingly favored the convenience of
purchasing computers online from
e-retailers, such as Amazon.com Inc. and
Newegg Inc., which are often able to
provide lower priced products. With the
large amount of information available
online, consumers are able to compare
products and research their quality to
inform their purchase decisions without
the counsel of industry employees,
eliminating the need for them to visit a
specialized computer retail establishment.
The overall trend toward e-commerce
has also enabled more consumers to
purchase computers directly from
manufacturers and software developers.
The vast majority of computer
manufacturers, such as Dell Technologies
Inc., Lenovo Group Ltd. and the Hewlett-
Packard Company, distribute their
products through Original Equipment
Manufacturer (OEM) agreements with
software developers rather than operate
physical retail stores. In addition, some
computer manufacturers sell computers
directly to consumers through their
online sites.
Software developers, such as
Microsoft, are able to sell computers
manufactured by other companies
through these OEM agreements.
Microsoft and other software companies
sell their software product by uploading
it to computers manufactured by other
companies and then selling it to
consumers as a bundle. As a result,
software development companies can sell
their product while also capturing
consumer demand for computers. While
Microsoft does operate some retail stores,
the majority of its products are sold
online or through large consumer
electronics retailers such as BestBuy.
Ultimately, the Computer Stores industry
is becoming an increasingly marginal
component of the US economy. The
number of industry establishments is
declining due to overwhelming
competitive pressure from consumer
electronics stores and e-commerce. More
broadly, retail sales of computers are
declining as more consumers are opting
to purchase computers from a variety of
online outlets. Meanwhile, the declining
price of computers and periphery
equipment has made it necessary for
retailers to sell an increasing number of
units and a diversified product mix. As a
result, this has favored the Consumer
Electronics Stores industry, which has
also been struggling to compete with
e-commerce sales.
As a result of these factors, IBISWorld
estimates that the number of industry
enterprises has declined at an annualized
rate of 5.8% during the current period to
7,675 companies. The majority of industry
enterprises that remain are primarily
independent, however, Apple Inc. and
Micro Electronics Inc. are two companies
that both retain significant shares of
industry revenue. A declining number of
industry operators has reduced the
industry’s demand for labor. As a result,
over the five years to 2019, the number of
Online
sales of computers
have drawn revenue away
from the industry
Provided to: Trident University (2132988619) | 01 May 2019
Computer Stores in the USApril 2019   8
WWW.IBISWORLD.COM
Industry Performance
Industry in decline
continued
industry employees is projected to
decrease at an annualized rate of 4.7% to
55,785 workers. Industry profit, measured
as earnings before interest and taxes, is
anticipated to decrease from 5.7% of
revenue in 2014 to 5.1% in 2019.
Industry
Outlook
The Computer Stores industry is
anticipated to continue its decline over
the five years to 2024 as industry
operators experience reduced customer
traffic due to high external competition
from brick-and-mortar consumer
electronics stores and online retailers.
Increased demand for computers and
periphery equipment due to growing per
capita disposable income and increased
investment in such equipment is
expected to be primarily satisfied by
external industry operators. As a result,
IBISWorld anticipates industry revenue
to decline an annualized 0.3% to $25.9
billion over the five years to 2024.
Demand for
computers
Demand for computers and periphery
equipment is anticipated to grow over
the next five years, driven by several
factors. The price of computers and
periphery equipment is anticipated to
decline over the next five years at an
annualized rate of 0.9%. Meanwhile,
continued growth in per capita
disposable income is expected to drive
increased consumer spending. Over the
five years to 2024, the value of consumer
spending is projected to grow an
annualized 2.0%. As a result, demand
for computers and periphery equipment
is anticipated to increase as well. This
trend is supported by a projected
increase in computer ownership among
households. Over the five years to 2024,
the number of households who own at
least one computer is forecast to grow at
an annualized rate of 1.3%.
From a business standpoint, demand
for computers and periphery equipment
is also anticipated to grow. The cost
savings associated with investments in
automation and computing technology
are expected to drive demand from
business users. Alongside continued
growth in corporate profit, private
investment in computers and software is
projected to increase an annualized 3.2%
over the next five years.
Unfortunately, the Computer Stores
industry is expected to benefit little from
overall demand for computers and
related products during the outlook
period. The entire retail sector is shifting
toward an online economy at the expense
of brick-and-mortar establishments.
Consumers typically benefit from greater
product information, a wider selection
and convenience. Over the next five
years, IBISWorld estimates that
e-commerce sales will grow an
annualized 8.0% and continue to draw
revenue away from brick-and-mortar
computer retailers.
On top of competition from
e-commerce retailers, the Computer
Stores industry is anticipated struggle
with external competition from the
Consumer Electronics Stores industry
(IBISWorld report 44311). Consumer
electronics stores retail a range of
Revenue growth
eludes industry
Demand
for computers and
periphery equipment is
anticipated to grow
Provided to: Trident University (2132988619) | 01 May 2019
Computer Stores in the USApril 2019   9
WWW.IBISWORLD.COM
Industry Performance
Revenue growth
eludes industry
continued
appliances and consumer electronic
goods, including computers and related
equipment. As computer prices have
fallen, retailers of such products have
sought to drive revenue growth through
higher unit sales, which typically favors
large retailers wi…
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