Industry Overview Flashcards
CONSUMER / RETAIL - Subsectors (2)
- Consumer staples
* Consumer discretionary
CONSUMER / RETAIL - Major Players (6)
- Amazon
- Coca-Cola
- Nike
- P&G
- Unilever
- Walmart
CONSUMER / RETAIL - Key Issues (7)
• Consumer preferences; matching supply with demand • Product innovation • Brand and customer loyalty • Supply chain management • Risk of a price war • Risk of cannibalization • Unit-level profitability
CONSUMER / RETAIL - Industry trends (6)
- Shifting consumer preferences
- Omni-channel sales approach
- Dominance of Amazon and e-commerce
- Preference for natural/organic
- Product personalization
- Digital and social media marketing
CONSUMER / RETAIL - Revenue drivers (7)
• Macro-economic health and disposable income • New products • New stores • New customers; existing customers • Average spend per customer • New channels • Pricing power
CONSUMER / RETAIL - Cost drivers (3)
- Input costs (e.g., fabrics, plastic)
- Production
- Marketing
FINANCIAL SERVICES - Subsectors (6)
- Investment Banking & Capital Markets
- Corporate and Commercial Banking
- Custody and Fund Administration
- Asset Management
- Retail Banking
- Insurance
FINANCIAL SERVICES - Major players (7)
- Bank of America
- BlackRock
- Citi
- Fidelity
- Goldman Sachs
- J.P. Morgan
- Wells Fargo
FINANCIAL SERVICES - Key issues (5)
- Margin pressure
- Customer experience
- Compliance
- Globalization
- Balance sheet / leverage
FINANCIAL SERVICES - Industry trends (5)
• Increased regulation, in often disparate forms
globally
• Shifting consumer demographics
• Digital future
• New technologies (e.g., blockchain, A.I.)
• Best and brightest taking jobs outside of
finance
FINANCIAL SERVICES - Revenue drivers (4)
• New customers • New locations • Deepening spend and cross-sell with existing customers • Fee vs. commission based product rates
FINANCIAL SERVICES - Cost drivers (4)
- Infrastructure
- People
- Physical locations
- Borrowing rate
TMT - Subsectors (7)
- Computers
- Internet
- IT Services
- Semiconductors
- Software
- Media
- Telecom
TMT - Major players (9)
- Apple
- AT&T
- Comcast
- Disney
- IBM
- Microsoft
- Netflix
TMT - Key issues (7)
- IP (Intellectual Property)
- Growth / scale of new technologies
- New digital business models
- Cybersecurity
- Customer experience management
- Regulatory environment
- Competitive dynamics
TMT - Industry trends (4)
- Convergence of TMT
- Rapid innovation
- Evolving customer demands
- Prevalence of digital content
TMT - Revenue drivers (3)
- New customers – the “S” curve
- New products
- Positive network effects
TMT - Cost drivers (2)
- High investment costs
* Cost to acquire new customers
OIL & GAS - Sub-sectors (6)
- Oil markets
- Natural Gas
- Upstream
- Midstream
- Downstream
- Oilfield services
OIL & GAS - Major players (5)
- BP
- ExxonMobil
- Marathon Petroleum
- Royal Dutch Shell
- Schlumberger
OIL & GAS - Key issues
4
- Market demand
- Competitive dynamics
- Capacity expansion
- Operational excellence
OIL & GAS - Industry trends (5)
- Price volatility
- Technological innovation to unlock shale gas
- New market entry
- New sources of supply
- Heightened focus on sustainability
OIL & GAS - Revenue drivers (2)
- Price
* Supply of oil & gas
OIL & GAS - Cost drivers (5)
- High investment costs
- Refining
- Marketing
- Transportation Variable manufacturing costs
- Sales and marketing
HEALTHCARE - Client types (4)
- Payers / Insurance
- Providers
- Pharma
- Medical Devices
HEALTHCARE - Major Players (6)
- Aetna/CVS
- CIGNA/ Express Scripts
- Blue Cross Blue Shield
- Kaiser Permanente
- Johnson & Johnson
- Pfizer
HEALTHCARE - Key Issues (3)
- Cost effectiveness of treatments
- FDA approval
- R&D productivity
HEALTHCARE - Industry trends (4)
• Aging population
• Payer consolidation
• Influence of technology on personalized
medicine and prevention
• New R&D technologies driving specialization
HEALTHCARE - Revenue drivers (4)
• Number of patients (covered in target treatment population) • Number of treatments (including frequency of use) • Geographic expansion • Pricing
HEALTHCARE - Cost drivers (2)
- High R&D costs
* Insurance reimbursement
AUTO & TRANSPORT - Sub-sectors (3)
- Auto manufacturers
- Auto component suppliers
- Airlines
AUTO & TRANSPORT - Major players (7)
- FedEx
- Ford
- General Motors
- Goodyear
- Lufthansa
- Toyota
- UPS
AUTO & TRANSPORT - Key issues (3)
- Manufacturing and supply chain management
- Safety concerns and recalls
- Product innovation
AUTO & TRANSPORT - Industry trends (4)
- Digitalization across the value chain
- Disruptive competition and innovation
- Heightened focus on sustainability
- Ride sharing
AUTO & TRANSPORT - Revenue drivers (4)
• Number of vehicles sold; how often people purchase vehicles • New customers • Pricing • Capacity (for airlines)
AUTO & TRANSPORT - Cost drivers (3)
- Manufacturing
- Marketing
- Maintenance
FINANCIAL SERVICES - Subsector Definition • Investment Banking & Capital Markets
Capital markets groups are units of a company or investment firm that handle financial and banking services for a set of clients or customers. These corporate divisions may exist within larger financial institutions to help with specific services such as obtaining leases, acquiring other companies, or issuing debt.
FINANCIAL SERVICES - Subsector Definition • Corporate and Commercial Banking
Corporate banking refers to the aspect of banking that deals with corporate customers. Commercial banks make loans that enable businesses to grow and hire people, contributing to the expansion of the economy. Both types of banks offer various products and services.
FINANCIAL SERVICES - Subsector Definition • Custody and Fund Administration
Core functions in global custody include fund administration and fund accounting (calculating how much income funds are making and spending), settlements (delivering securities to the buyer and the money to the seller), and corporate actions (keeping track of dividend payments for equities and coupon payments for bonds
FINANCIAL SERVICES - Subsector Definition • Asset Management
Asset management is the direction of all or part of a client’s portfolio by a financial services institution, usually an investment bank, or an individual. Institutions offer investment services along with a wide range of traditional and alternative product offerings that might not be available to the average investor.
FINANCIAL SERVICES - Subsector Definition • Retail Banking
Retail banking, also known as consumer banking or personal banking, is the provision of services by a bank to the general public, rather than to companies, corporations or other banks, which are often described as wholesale banking. Banking services which are regarded as retail include provision of savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. Retail banking is also distinguished from investment banking or commercial banking. It may also refer to a division or department of a bank which deals with individual customers.
FINANCIAL SERVICES - Subsector Definition
• Insurance
Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.
