Originally posted by Parka:
It all boils down to the value the customer gets.
The company that can give the customer the best wins.
Electronics industry, to me, is saturated. What are the usual companies that are staying around? They are usually the big ones. Small ones come and go without leaving anyone any impression they were there in the first place.
There's more that meets the eye to this saturation thing.
Let's take a look at the razor blade industry. Name one company that dominates this industry.
Maybe it's me or what, but I don't see many other companies selling razor blade. Is this market saturation? Why don't people enter this industry? People also change blades very often.
Not everyone in this world change blades very often, and also NOT everyone use razor blade!
we can assume that this earth is equal, means we have 50% male and 50% female.
then we categorize them into 5 cat, A (from 0-20yrs), B (from 21-40yrs), C (from 41-60 Yrs), D (from 61-80yrs) and E (80 & above)
People now can live until average of 67 years old.
So only category B, C & half of D need to use razor blade.
It's just 25% people need razor blade in this world. But 100% people on Earth need toothpaste & toothbrush and syampoo!!
But look at household consumables item, even when you are just a 1 month old baby, your mom have to wash your clothed and change your napkins. At the same time, your mom & dad have to clean the house & brush their teeth and etc!!
So, you actually consuming consumables item even when you are 1 month only!!
When you get old, even if you have no more real teeth (maybe due to insist of using non-sugarfree toothpaste), you will still use toothpaste to brush your fake teeth.
You start brushing your teeth from yr 1 to the day you die, but if you are a guy, you start to use razor blade when you are 20.
Can you see the difference between razor blade & consumable item?
If you wanna compare with computer parts, can!! let's talk about HP printer.
in a HP LaserJet printer, there will be many parts such as heating elements and etc. Although HP printer is very famous in the world, but HP is the only company on Earth that produce heating elements for HP printers.
But let's look at toner & cartridge, a lot of remanufacturer toner and refill cartridge running in the market.
Why these competitors do NOT want to produce heating elements and they start to bang the toner market?!
This is because to a printer, toner is a consumable item and heating elements is just a spare parts. Consumable item will never ever be saturated BUT if they start to produce heating elements, they will be in deep shit.