Question

Using information from the ABI Inform and GlobalEdge Databases of Industry Performance, select data on the following subset of industries: automobile healthcare financial services consumer goods telecoms and technology Based on the data you find, discuss your views on the following questions. 1. What kinds of industries tend to be better performers in the medium to long term? Why? What kinds of industries tend to do poorly in the medium to long term? Why? Refer to the readings to support your views. 2. Can you make the claim that some industries are inherently more profitable than others? Provide arguments and examples to justify your response. 3. Which of these industries would you recommend for your team's strategy project? Justify your recommendation.

Answer 1

Question : 1 a. What kinds of industries tend to be better performers in the medium to long term? Why?

The customer centric industries which are effective and efficient in their in house operations and are aligned strategically for meeting future demand of technology and market will tend to perform better in medium and long term. Because these industries are continuously updating themselves based on the customer demand, market need, technology change with improving in-house efficiency and reducing operation costs for the business.

Question 1b: What kinds of industries tend to do poorly in the medium to long term? Why?

Answer: The non-customer centric industries which are strategically not aligned to meet customer demand and market needs. These industries are not able to change themselves as and when needed for meeting the customer expectations and market requirements. The organization's success is purely depends on the meeting the customer expectation along with improved operation efficiency and developing strategically objective for the organization so that the organization will be able to meet and survive in the future.

Question 2. Can you make the claim that some industries are inherently more profitable than others?

Answer: No, we cannot claim that some industries are inherently more profitable than others, because industries are profitable only when they are able to place their product or service in the market based on their operational expenses and customer’s paying capability or market driven price based on the competition in the market. Thus these industries look to be inherently profitable because of their effective and efficient management of the business operations. The strength of the efficient and effective management results the profits for the organization. The strategy part of the organization is key for long term success and profit for the organization. Thus such industries are strategically managed industries which are having tough operational measures to achieve.

3. Which of these industries would you recommend for your team's strategy project?

Answer: We would like to recommend the industries which are strategic in nature for our team's strategy project; because these industries will help them to understand how the strategy is essential for a business and what are the essential benefits the industries can gain by following the strategy methodology. An industry cannot success if it do not practice strategy methodology.