Industry Analysis

What is manufacture Structure The term sedulousness structure refers to the charitable 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 manufacture. Hence, primarily speaking, the take of competition in an perseverance rises with the number of firms in the manufacturing. The size distribution of firms in an industry is important from the position of both(prenominal) business policy and public policy. If all firms in an industry be small in size, relative to the size of the industry, it is a dis hrented 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 disunited 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 genuinely small number of firms accounts for a very large share of the industrys output. In the united States, industries have been becoming ever more consolidated everywhere 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 di ligence Structure As indicated above, the ! concept of industry structure is levelheaded in both business policy and public policy. We unbidden discuss each use briefly. Business Policy and safety valve: By looking at the structure of an industry, one bunch often learn a lot about competition, rivalry, first appearance 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, revision it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay