Your sector

Return to:

Your sector

Computer shop

Introduction

So you've decided you want to run a computer shop. This guide will take you through the issues you need to consider and give you practical pointers on getting started.

Sector trends

Huge changes have occurred in the computer industry since the development of the personal computer (PC) in the early 1980s. Technology has advanced at a very fast pace, enabling increasingly powerful machines to run more and more sophisticated software and so carry out ever more complex tasks. This has made it a very dynamic industry.

Perhaps one of the most significant factors to impact on the industry in recent years (excluding the panic over the year 2000 problem) has been the huge growth of the internet and e-commerce. This boosted industry sales, because;

  • consumers were prompted to purchase computers in order to access the internet
  • businesses rushed to establish and develop their online presence

The roll-out of internet-enabled devices such as mobile phones, netbooks and tablet PCs in recent years has also been an important development for the sector.

Furthermore, the client/server network model adopted by the internet had a strong influence on enterprise networks and intranets implemented by many larger businesses and organisations.

Another important trend has been a move among many businesses towards outsourcing tasks such as computer services to specialist companies.

1.1 Industry performance

As a result of the above, most sectors of the computer industry boomed during the 1990s. However, during the 2000s, the industry experienced a slowdown as businesses began to cut back on their IT spend and this situation worsened during the closing years of the decade as the economy slowed. Falling prices and occasional price wars also had an impact on industry performance, and caused considerable difficulties for many computer retailers. Furthermore, as computers have become more powerful, both consumers and businesses have needed to upgrade and replace them on a less frequent basis.

1.2 Keeping up with industry trends

In such a fast moving industry, it's essential to keep right up to date with industry trends. One good way of doing this is to belong to a specialist trade association, such as IntellectUK.

Trade journals such as IT Reseller are useful sources of up to date news and product information.