Question

This week we will be discussing and providing examples for the various industries to include: growth industry, mature industry, and declining industry.

Identify a growth industry, a mature industry, and a declining industry. For each industry, identify the following;

• the number and size distribution of companies;
• the nature of barriers to entry;
• the height of barriers to entry; and (d) the extent of product differentiation.

Once you have identified an example for each, then, answer the following questions:

• What do these factors tell you about the nature of competition in each industry?
• What are the implications for the company in terms of opportunities and threats?

Can any assistance please be provided on the above please use your own words no plagiarism thank you

Answer 1

ANSWER:

As per the given Question

An example of growth industry is e-commerce and online auctions industry. In this industry There are many companies. But big player are few like Amazon and EBay. - Barriers of entry are capital requirements and an efficient website. - Both these barriers are medium to high. Capital required is medium to high and making a useful and user friendly website is not easy. Product differentiation is low. All players sell same or similar kind of products. the only differentiation lies in online presentation of store and prices of products. Competition is very high. But opportunities are also high. People today prefer online buying. So there is too much scope for the companies to grow. There is only one threat and that is lack of product differentiation. An example of mature industry is tobacco industry. In this industry - There are many companies. But big players are few. There are many local or regional players. - Barriers of entries are mainly government regulations. - Barriers to entry is not high. Any player who complies with rules and regulations can operate in the market. - Product differentiation is very low. The only difference lies in brand positioning of different companies and prices of products. Competition is very high. But market is almost saturated. Opportunities are less. Main threat is government regulation An example of declining industry is railroad Industry. In this industry - There are few companies in the market. All are of comparable sizes. - Barriers of entries are mainly capital requirements. - Barriers of entries are medium to high. - Scope of product differentiation is too low. Standards are defined by government and suppliers will have to provide same requirements. Competition is not too much. But demand is also limited. New railroads are less constructed. Demand is mainly linked with their repair.

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