Companies in this industry distribute computers, computer equipment, and packaged computer software, as well as office machines and equipment. Major US-based companies include Ingram Micro, ScanSource, Tech Data, and divisions of diversified electronics distributors such as Arrow Electronics and Avnet. Major companies based outside the US include ALSO (Switzerland), Digital China (China), Esprinet (Italy), and Redington (India).
COMPETITIVE LANDSCAPE
Demand is strongly affected by the level of business activity. The profitability of individual companies depends on merchandising and efficient operations. Large companies have economies of scale in purchasing. Smaller companies can compete effectively by offering specialty products or superior service. The US industry is concentrated: the top 50 companies account for nearly 80% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include copiers, parts and equipment (about 50% of industry revenue), computer peripheral equipment (about 20%), office equipment, ATM machine and shredders (about 20%), and computer printers (about 10%).
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