i: Compare characteristics of representative industries from the various economic sectors.

Question 1

Comparing characteristics of representative industry sectors

Answer 1

The elements of an industry strategic analysis are the major firms, barriers to entry, industry concentration, influence of industry capacity on pricing, industry stability, life cycle, competition, demographic influences, government influence, social influence, technological influence, and whether the industry is growth, defensive, or cyclical.

Question 2

Random facts

Answer 2

Technological influences are relatively important in the pharmaceuticals and oil services industries, but they are generally not a significant influence in the confections industry.

Which of the following industries is most likely to operate in a fragmented market?: Oil Industry - Most areas of the oil services industry are characterized by many small competitors. The confections and pharmaceutical industries each have a small number of very large firms.

Which of the following industries is likely to be most sensitive to the business cycle?: The automobile industry is cyclical because demand for new autos fluctuates with the business cycle. The confectionery industry tends to be non-cyclical and defensive because demand for candy tends to be stable through the business cycle. The pharmaceutical industry is non-cyclical because demand for medicines is independent of the business cycle.