Industry and Competitive Analysis Flashcards
1
Q
What is the “Herfindahl-Hirschman Index (HHI)”?
A
A measure of market concentration.
Calculated as the sum of the squares of competitor market shares.
Antitrust regulators in some countries consider markets with an HHI between 1500 and 2500 moderately concentrated.
An HHI over 2500 is highly concentrated.
2
Q
What is a “PESTLE” analysis?
A
A framework for analyzing factors that influence an industry’s economic outcomes.
