Tech Data Executive Summary

Industry Overview and Competitive Positioning High Degree of Competition The IT distribution industry is intensely competitive with only a relatively small number of companies within the industry. These companies include Ingram Micro, Synnex, Arrow Electronics and Avnet Inc. These companies compete fiercely on factors such as product availability, price, speed of delivery, direct terms, and service quality. The industry constantly faces competition from certain direct sales relationships between manufactures, resellers, and end users. Demand DriversTech Data and its competitors do not sell their equipment directly to the end user. Our company lists its selling mediums into three categories: Value

VARs are not in the supply chain business and not want to invest the time and money in establishing relationships with producers of technology products. They rely on Tech Data to supply them with technology products. Tech Data further enhances customer value through its high level of service that includes training, technical support and access to financing programs. Americas Economy Tech Data’s total sales in the Americas accounted for 37.6% of their revenue stream in 2015. However, 51.5% of net income was generated by sales in the Americas. Tech Data is dependent on the growth on small business since a large majority of their clientele is in the small to medium sized business sector. Growth in the small business sector not only leads to the creation of new small businesses that can serve as new customers to Tech Data but also allows for growing small business to purchase technology products from Tech Data. While Tech Data does not sell directly to end users, it is still dependent on end users purchasing technology products such as tablets and cell phones from its VARs. Tech Data is dependent on individuals purchasing technology products to increase demand. Interest rates are low in the