Question

Hi, I need help to fulfil following task. In course of University lecture I need to do an analysis for a fictional plastic waste management company in comparison to competitors. It is assumed that the company uses plastic digesting bacteria to digest plastic waste into water and CO2, which in turn are used to grow plants. This technology is sold to the city's landfills as well as public housing.
It is assumed that company is located in Vienna (Austria).
I need to answer following questions:

• How dynamic is your industry and its development?
• Which role does innovation and technological progress play?
• How large is the industry gross sales / turnover?
• How is the historical price development?  
• Which developments (economic, legal, ecological, social, regional) affect your industry?  
• How is the growth of your industry determined?
• What are the expected net returns in your industry?
• How do you estimate your own position in the industry?

Answer 1

1. Industry is extremely dynamic and is in initial stages of development as it can handle only certain amount of volume because of its nascent technological progress. Sector is already driven by firms offering alternative plastic waste management solutions with low costs.
2. Innovation and technology plays immense role in disruption and creating first mover advantages which helps firm graner maximum revenue and profit  
3. Industry turnover is in size of 2billion dollar as its driven fairly by smaller players with limited cash flows.
4. Price development is led by industry leader who is followed by other players because of low cost snd low price advantages.
5. Economic problems mainly caused due to heavy capex for technology innovation and debt servicing. Legal aspects include changing regulatory framework.
6. Growth of industry is determined using customer market share and revenue market share as well as customer experience.
7. Net returns depend in investment madr by each company. It ranges anywhere between 5-8%.
8. The firms position in industry is quite stable considering innovation models and cost of imitation being high for competitors and coupled with positive customer experience it is well placed.