Industry analysis of the electronics industry
Threats and opportunities in the industry
Suppliers and distributors

The firms in the Electronics industry such as BestBuy need to conduct distributor mapping as a
way of ensuring that they receive the best and safe supplies that will satisfy the clients. The
industry is much more sensitive since it deals with gadgets that use the high voltage electric
power. The income of the suppliers is dependent on the income of the distributors in the market.
The increase in the number of electronics shops and competitors means that the suppliers and
distributors have a bigger market hence they have a higher bargaining power and are able to sell
their products at a higher price. The bargaining power of the suppliers in the industry affects the
business because it reduces the amount of profit made by the organization. There are some
suppliers that buy off the other suppliers in the market hence eliminating competition. The firm
is therefore able to set the price and set its own quality standards. However, the restaurant
industry is somehow competitive meaning that only fewer products are controlled by the
monopolies in the market. The government has also played a big role in eliminating the
monopolies and ensuring that the market is as competitive as possible for the benefit of the
society. Best Buy gets their goods and services from multiple suppliers and distributors hence
reducing the bargain of the latter and the former. It therefore means that there are some sections
of the market that are dominated by the monopolistic distributors while in the others, the prices
are set by the market forces. However, it should be noted that the suppliers and distributors play
a big role in the success of the restaurant industry. The electronics sold meet the specifications of
the clients and that is why they increase the amount of sales.

INDUSTRY ANALYSIS OF THE ELECTRONICS INDUSTRY 3

References

Consumer Electronics Stores in the US. Industry Market Research Reports, Trends, Statistics,
Data, Forecasts. (n.d.). Retrieved from https://www.ibisworld.com/industry-
trends/market-research-reports/retail-trade/electronics-appliance-stores/consumer-
electronics-stores.html