Today, computer device manufacturers operate in the area of networking, telecom, peripherals and PCs. It's a high volume but low margin arena for the players. The scenario presents challenges as manufacturers have to sustain their business and also ensure profitability. The challenges are:
- Increased playing field & fierce competition in SOHO / Retail / SME devices industry.
- Lines are blurring as far as differentiation between various providers in the consumer device space, be it PC's or network devices. Hence the focus is on offering value for money in terms of device performance and regular product innovations.
- Higher focus on new products and higher R&D dollars spent. However, lower margins & high cost of operations complicates getting the necessary R&D dollars.
- Moving technical support offshore helps reduce operating costs. But the key challenge is knowledge engineering. The quest is whether the service provider is able to create a learning organization?
- Retain top of the mind recall. The success of a business depends upon reliability of products and the strength of services. Understanding the needs of customers, offering them reliable solutions is the key to increasing your "share of customer" and "market share".