The way to conduct a computer market analysis is to apply the basic principles of market analysis to the computer market. A basic market analysis includes aspects like the size of the market, the growth rate of the market, the profitability of the market, the trends in the market, and the factors for success. Other aspects include the channels for distribution and cost of structure. These must also be applied to the computer market analysis in order to arrive at a well-balanced analysis of the computer market.
The size of the computer market can be deduced by making an evaluation of the current sales as well as the projected future sales. The projected future sales can be determined by studying the inflow and outflow of cash from previous sales. This data can be used to make allowances for any future expansions or contractions in the computer market. Some sources of information regarding the size of the computer market include the results from customer surveys, financial data from the main computer companies, and data from government and trade associations.
Analyzing the market growth rate as a part of conducting a computer market analysis involves a comparison of the past related data and the present data with the aim of arriving at a calculated estimate for the future. This means that characteristics like past sales records, past consumer behavior, and past environmental factors must be calculated with the present information regarding these factors. This information will allow for the arrival at an estimation of future growth in the computer market.
Profitability of the computer market is based on the analysis of the aggregate of profits from the different individual computer firms and companies that make up the computer market sector. Such companies have differences in the amount they profit. Aspects that affect the profit include the effect of competition, the effect of the demand from consumers, the effect of the regularity and ease of obtaining supplies, and the effect of monopoly.
Market trends in relation to a computer market analysis include all of the changes in technology and the effect of such changes of products, prices of products, consumer demand, and the availability of the products. An analysis of the distribution channels includes a study of the effectiveness of the methods for distributing the computer products to the consumers. It also includes how effective the market is when it comes to creating new distribution channels.