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    Stratman

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    Angela Miles Dizon
    The document discusses three types of industries: growth, mature, and declining. For each industry it analyzes: (1) the number and size of companies, (2) barriers to entry, (3) height of barriers, and (4) product differentiation. A growth industry has many small and large companies, low barriers to entry, medium-high barriers, and low product differentiation. A mature industry has many companies of varying sizes, increased barriers to entry, medium-high barriers, and high differentiation. A declining industry has few comparable sized companies, capital-based barriers to entry, and high product differentiation defined by government standards.

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    Stratman

    Uploaded by

    Angela Miles Dizon
    34 views2 pages
    The document discusses three types of industries: growth, mature, and declining. For each industry it analyzes: (1) the number and size of companies, (2) barriers to entry, (3) height of barriers, and (4) product differentiation. A growth industry has many small and large companies, low barriers to entry, medium-high barriers, and low product differentiation. A mature industry has many companies of varying sizes, increased barriers to entry, medium-high barriers, and high differentiation. A declining industry has few comparable sized companies, capital-based barriers to entry, and high product differentiation defined by government standards.

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    The document discusses three types of industries: growth, mature, and declining. For each industry it analyzes: (1) the number and size of companies, (2) barriers to entry, (3) height of barriers, and (4) product differentiation. A growth industry has many small and large companies, low barriers to entry, medium-high barriers, and low product differentiation. A mature industry has many companies of varying sizes, increased barriers to entry, medium-high barriers, and high differentiation. A declining industry has few comparable sized companies, capital-based barriers to entry, and high product differentiation defined by government standards.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views2 pages

    Stratman

    Uploaded by

    Angela Miles Dizon
    The document discusses three types of industries: growth, mature, and declining. For each industry it analyzes: (1) the number and size of companies, (2) barriers to entry, (3) height of barriers, and (4) product differentiation. A growth industry has many small and large companies, low barriers to entry, medium-high barriers, and low product differentiation. A mature industry has many companies of varying sizes, increased barriers to entry, medium-high barriers, and high differentiation. A declining industry has few comparable sized companies, capital-based barriers to entry, and high product differentiation defined by government standards.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Identify a growth industry, a mature industry, and a declining industry.

    For each industry,


    identify the following: (a) the number and size distribution of companies; (b) the nature of
    barriers to entry; (c) the height of barriers to entry; and (d) the extent of product
    differentiation. 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?
    (no table)

    The number The nature of The height of The extent of


    and size barriers to entry barriers to product
    distribution entry differentiation
    of
    companies

    Growth Industry: Many The barriers to Both these Their product


    companies, entry are capital barriers are differentiation will
    Growth industry is but big requirements medium to be low. This is
    the company who players are and an efficient high. Capital because all players
    has the first-time few such as website(low). required is will sell the same
    demand expands EBay and This is because medium to high or similar type of
    rapidly due to new Shopee. most of their and making a products. Online
    customers in the market activities useful and user presentation of
    market. Examples are done on their friendly website store and price of
    of growth website. is not easy. the products may
    industries are e- be their only
    commerce and differentiation.
    online auctions.

    Mature Industry: There are The barriers of Barriers to entry Product


    many entries are are medium or differentiation is
    Market of mature companies, increased while high. Any high because they
    industry is totally but big the threat of entry player who already have the
    saturated, demand players are from potential complies with brand loyalty. The
    is limited to few, and competitors rules and only difference lies
    replacement there are decreases. regulations can in brand
    demand and many local or operate in the positioning of
    growth is low or regional market. different
    zero. They are players. companies and the
    surviving after the prices of products.
    industry shakeout.
    Example of a
    mature industry is
    the tobacco
    industry.

    Declining - There are Barriers of Barriers of Scope of product


    Industry : few entries are entries are differentiation is
    companies in mainly capital medium to high. Standards are
    Declining industry the market. requirements. high. This is defined by the
    is the company’s All are of There is a huge because they government and
    growth becoming comparable cost of the may be required suppliers will have

    This study source was downloaded by 100000861601157 from CourseHero.com on 03-01-2023 03:47:40 GMT -06:00

    https://www.coursehero.com/file/163462285/sb2docx/
    negative due to the sizes. materials and to meet the to provide same
    technological resources. standard requirements.
    substitution, social procedure and
    changes and requirements
    demographics. An done by the
    example of a government
    declining industry before entering
    is the railroad the market.
    industry.

    Growth industry:
    Competition is very high. But opportunities are also high. This is because people today prefer
    online buying, so there is too much scope for the companies to grow. There is only one threat,
    which is lack of product differentiation. (very little brand loyalty)
    Mature industry:
    Competition is very high. But the market is almost saturated. Thus, opportunities become
    more because the barriers of entries of new competitors are increasing. The main threat is that
    potential competitors in the same stage are competing together to gain more customers.
    Declining industry:
    Competition is medium because lesser suppliers offer the same products in the market now.
    But, the demand is also limited. New railroads are less constructed. Demand is mainly linked
    with their repair.

    This study source was downloaded by 100000861601157 from CourseHero.com on 03-01-2023 03:47:40 GMT -06:00

    https://www.coursehero.com/file/163462285/sb2docx/
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