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What is Computer Industry Analysis?

Article Details
  • Written By: D. Nelson
  • Edited By: M. C. Hughes
  • Last Modified Date: 05 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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The computer industry includes all of the world's businesses that are involved in manufacturing, developing, selling, and maintaining computer hardware and software, computer accessories, and network infrastructures. Many economic and financial experts believe this to be one of the most quickly growing and profitable industries in existence. Computer industry analysis is the practice of monitoring the industry for trends, technological developments, and potential risk.

The monitoring of trends is an important part of computer industry analysis. Trends can refer to a number of different factors that impact pricing, manufacturing, and investments related to the industry. A professional in this field, for example, might perform market research in which he or she discovers what various consumers expect from their computer related services. Analysis may focus on issues such as the network infrastructure needs of corporations and other large organizations, or it may also concentrate on the desires and expectations of those who use computers for entertainment and recreation.

The computer industry market also has trends that can be monitored and recorded in computer industry analysis. Factors such as stocks, investments, and pricing may be taken into account. This information can serve relevant businesses in forming business plans and strategies concerning when to introduce products, how to price them, and when and how to purchase industry shares.

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The computer industry is often thought to be one of the most competitive. For this reason, the industry is prone to rapidly developing technology that may change annually or even monthly. Computer industry analysis may focus on the success of new technologies and capabilities, as well as news regarding new technologies that are in the making but which have not yet been put for sale on the market.

As in any industry, risk management is a factor considered by many computer industry businesses. Risk management is the practice of predicting the probability that undesirable events will occur and lessening the impact of these undesirable events. An analyst may design a computer industry outlook that will predict loss of value for some products and business, often due to technological flaws and decreases in consumer spending.

Most businesses in this field have need for computer industry analysis. Some may hire firms that specialize in advising computer businesses in how best to introduce new products onto the market in terms of timing and pricing. Factors such as advertising and branding of computer related products also may be impacted by computer industry analysis, particularly by analysis that is determined by market research related to certain customer demographics.

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