Electronic Component Industry Analysis
INTRODUCTION
The electronics distribution industry is inherently a volatile one because it is based on technologies that are constantly evolving and improving as time passes. The industry has already survived three major technological revolutions and can probably be expecting another one in its long-term future. These "revolutions" usually concern the refinement or replacement of a component that is fundamental to all electronic circuitry. While demand for related component parts remains relatively stable, the revolutionized component becomes a high demand item (product growth) and all other circuit design considerations will revolve around it. This in turn causes an increased focus on the item in the distribution industry, and the impact is felt in all markets. Despite these revolutions the industry has grown and developed over the years into what is currently a 6.97 billion dollar industry. This is quite a respectable market considering the humble beginnings of electronics distribution. Most significant distributors of the 1980's originated from New York City's old time "Radio Row." This was an area in the city (Cortlandt street) where radio supply stores aggregated to do their business. The business at that time was comprised mostly of supplying radio hobbyists or professionals with radio crystals and other related components. The first revolution occurred with the advent of the vacuum tube which quickly became the mainstay of all radio and later television products. The onset of World War Two fueled the industry because equipment used to fight the war, especially that involving aviation, was becoming increasingly dependent on electronic parts and equipment. Technological pressures at this time led to the development of the miniaturized transistor, which increased the efficiency of electronic circuits while at the same time reducing the bulky space requirements previously created by vacuum tubes. This marked the second major revolution in the
The electronics distribution industry is inherently a volatile one because it is based on technologies that are constantly evolving and improving as time passes. The industry has already survived three major technological revolutions and can probably be expecting another one in its long-term future. These "revolutions" usually concern the refinement or replacement of a component that is fundamental to all electronic circuitry. While demand for related component parts remains relatively stable, the revolutionized component becomes a high demand item (product growth) and all other circuit design considerations will revolve around it. This in turn causes an increased focus on the item in the distribution industry, and the impact is felt in all markets. Despite these revolutions the industry has grown and developed over the years into what is currently a 6.97 billion dollar industry. This is quite a respectable market considering the humble beginnings of electronics distribution. Most significant distributors of the 1980's originated from New York City's old time "Radio Row." This was an area in the city (Cortlandt street) where radio supply stores aggregated to do their business. The business at that time was comprised mostly of supplying radio hobbyists or professionals with radio crystals and other related components. The first revolution occurred with the advent of the vacuum tube which quickly became the mainstay of all radio and later television products. The onset of World War Two fueled the industry because equipment used to fight the war, especially that involving aviation, was becoming increasingly dependent on electronic parts and equipment. Technological pressures at this time led to the development of the miniaturized transistor, which increased the efficiency of electronic circuits while at the same time reducing the bulky space requirements previously created by vacuum tubes. This marked the second major revolution in the
Bibliography: Multiple authors. " Top 50 Distributors." Electronic Buyers ' News , 25 April, 1988, special insert. "Facing The Forces Of Change." Published by the Distribution Research And Education Foundation . Prepared by Arthur Anderson & Co. 1987. "Distributor Productivity Report." Published by the National Electronic Distributors Association . Prepared by Distributor Productivity Reports Inc. 1986.