Throughout the consumer electronics industry, one of the most important trends that have been shaping the industry is the consumer demand for products that are very convenient, and can perform multiple tasks. Years ago, companies were making separate products for internet access and cellular phones. Although this serves as a smart business tactic for the company, consumers do not want to have to buy two different products, and have to carry both around. With the ever-growing trend of smartphones, many companies are attempting to combine a cell phone with anything from internet access, to GPS devises, to convenient email use. This idea clearly favors the consumer because they only need to buy one product for multiple purposes. However, the business receives positive consumer feedback, and begins to develop brand equity and loyalty.
This new trend has then largely affected the competitive landscape in the United States. Companies that simply specialized in one product that performs one specific job can no longer stay competitive. Sales for products such as a GPS have declined because of smart-phones like the iPhone or BlackBerry have “apps” that contain a GPS system. In today’s society, many consumers continue to demand products that are convenient; therefore, companies need to broaden their production to stay competitive.
I think this is true in the consumer electronic industry as well as many other industries. We as consumers are always looking for instant gratification and devices that we can check our email from with a full signal, make a phone call with crystal clear sound, and listen to our favorite song all without moving more than one finger. People become impatient and aggravated when a page on the internet takes more than 10 seconds to load. The ease of one device provides less bulk and more happy customers, something businesses are always looking to make.
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