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While Indias sales remained roughly flat in 2015, Chinas year-over-year growth slowed.3 percent from a 10 percent gain in 2014 and 16 percent gain in 2013.
The conversation between investors and executives would focus on the structural, not the transient.
Changes in Industry Structure So far, we have discussed the competitive forces at a single point in time.This lowers the inherent cost structure of the industry, allowing higher profit, greater demand through lower prices, or both.Answering such questions is often the source of true strategic insights.Products are packaged in small containers and logistical costs are high, necessitating local production.And.U., are relatively easy to steer through compared to emerging regions.When industry structure is in flux, new and promising competitive positions may appear.The industrys products are standardized or undifferentiated.Conversely, government policies favoring unions may raise supplier power and diminish profit potential.In this way, technological changes or competitive discontinuities in seemingly unrelated businesses can have major impacts on industry profitability.
Conversely, the proliferation of products in the ice cream industry has gradually filled up the limited freezer space in grocery stores, making it harder for new ice cream makers to gain access to distribution in North America and Europe.
The supplier group can credibly threaten to integrate forward into the industry.The average return on invested capital varies markedly from industry to industry.For instance, patents raise barriers to entry, boosting industry profit potential.For example, in 2014, Ford replaced the steel in its popular and highly profitable F-series truck with aluminum in order to reduce weight and enhance fuel efficiency, a move that chevrolet malibu 2002 repair manual could have scared off customers who believed that the lighter material was less rugged.Automakers have made massive investments in emerging market countries and must be extremely nimble if they are to successfully navigate the next few years.Growth in emerging economies of Asia Pacific including China and India is expected to augment the regional demand.The challenge is to find ways to surmount the entry barriers without nullifying, through heavy investment, the profitability of participating in the industry.Industry structure drives competition and profitability, not whether an industry produces a product or service, is emerging or mature, high tech or low tech, regulated or unregulated.