Secondary Market Information - A Term Paper

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At the same time, though facilities were not growing at the same rate as the demand for these products was, the semiconductor industry association believes that there is still production capacity and the overall utilization of the capacity is not maximal.

7) Distribution methods

The main distribution methods within the industry include retailing, business to consumer model, and business to business model also. As the business is so big, it is impossible to say in which ways it is the best to optimize the supply chain, especially considering the fact that often the products are sold to the final purchasers through different local dealers, who increase the final purchase price, but at the same time expand the total market presence of the products in different regions.

8) Price level

The industry has products in different price ranges to reach the clients of different income groups and to expand the market share to the countries with growing but still rather low purchasing power. That is why decreasing overall costs of production is the main competitive strategy for the companies to remain profitable in the long-term in this industry.

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9) Trends in prices

Generally, though the revenues of the companies operating in this industry were increasing, this is due to cost management and growing market share, while the total prices for the products have been falling due to more innovative products entering the market and rather short life cycle of semiconductor products in general. There are still though products for which prices have been stable, namely though that do not have substitutes.

10) Trends in production (increasing or decreasing, changes in inputs) or consumption (shifts based on fads or other influences)

The production has been increasing during the last five years, while the demand has increased much more. The association of the semiconductor industry expects the production to shift to Asian countries even more, the demand to increase there also, while the demand in Europe, USA and Japan to remain at current levels due to saturation of the market with the products offered......

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