Industry Analysis

What is manufacture Structure The term sedulousness structure refers to the man activity and size of it distribution of firms in an manufacturing. The number of firms in an fabrication may run into hundreds or thousands. The existence of a outsize number of firms in an assiduity reduces opportunities for coordination among firms in the pains. Hence, by and large speaking, the take of competition in an patience rises with the number of firms in the constancy. The size distribution of firms in an industry is important from the billet of both(prenominal) business policy and public policy. If all firms in an industry argon small in size, relative to the size of the industry, it is a dis h granted industry. If a small number of firms control a large share of the industrys output or sales, it is a consolidated industry. The type of competition in fragment industries is generally rattling different from that in consolidated (or concentrated) industries. We allow be particularly interested in the behavior of oligopolies, industries in which a precise small number of firms accounts for a very large share of the industrys output. In the pair States, industries have been becoming ever more consolidated all over time. In fact, over half of all U.S. industries today are oligopolies.

The structure of an industry affects the conduct of industry members (sellers and buyers) which, in turn, affects industry performance (profitability). This is the STRUCTURE-CONDUCT-PERFORMANCE (S-C-P) Model from industrial organization economics (Scherer, 1996). Uses of assiduity Structure As indicated above, the concept of industry str! ucture is impelling in both business policy and public policy. We free discuss each use briefly. Business Policy and dodge: By looking at the structure of an industry, one nap often learn a lot about competition, rivalry, mental institution barriers, and other aspects of competitive dynamics in that industry. Analysis of industry structure is an integral part of industry analysis in strategic management. In...If you want to get a full essay, place it on our website: BestEssayCheap.com

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