Toshiba Competition
Now Viewing Toshiba's competition in: Technology Sector (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company have marketing arrangements with other companies? - Biotech companies typically ally to utilize technologies and get products to market more quickly.
Who are the largest individual customers? - Many technology companies exist on revenue from just a few large customers.
How does the company find new customers? - Many companies advertise in trade publications, use a sales force or manufacturers representatives, and attend trade shows. Most selling is by technical staff.
Are there significant sales to the US government? - Technology sales to the US government commonly involve defense and aerospace uses.
Does the company expect to do more security or military work for the government? - Government spending for security work is expected to increase.
How much does the company participate in trade shows? - To display their newest products and services, many technology companies depend on the marketing and sales opportunities of trade shows.
How does the company price its products in relation to competitors? - Pricing pressure is common among rivals that have comparable offerings, such as personal computer products or a specific IT service.
Is a company in the industry the "price leader"? - Large players are able to invest in differentiated, premium products that are more profitable.
What competitive advantage does the company have? - Large companies often have advantages in access to capital and marketing, while small companies can compete successfully with niche expertise.
Competitive Landscape
Demand often depends on the income of consumers or the profitability of business customers, because many technology products and services are expensive. The profitability of individual companies is driven by their ability to develop and market new products. Large companies often have advantages in access to capital and marketing. Small companies can compete successfully if they have expertise in a particular field of knowledge. The industry is capital-intensive: average annual revenue per worker is nearly $300,000.
Business Challenges
CRITICAL ISSUES
High R&D Investment Required - To develop new products and improve old ones, tech companies must continually invest in R&D. Big companies like Intel, Cisco, and Amgen typically spend between 10 and 25 percent of revenues on R&D. Smaller tech companies often have more limited access to R&D funding.
Dependence on Consumer, Business Spending - Demand for technology products and services depends on the state of the economy. Because many tech products are improved versions of older products, their purchase can be deferred during difficult economic times. Spending on information techonology is particularly vulnerable to corporate budget cuts.
Industries Where Toshiba Competes
- Computer Hardware(primary)
- Aerospace & Defense
- Automotive & Transport
- Computer Services
- Construction
- Consumer Products Manufacturers
