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  Industry Analysis

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Approaches to StudyingIndustry

 The Structure-Conduct-Performance(SCP) Paradigm:

• Market Structure - Conduct –Performance

• Conduct can aect market structure.

  Market performance can aectconduct as

  well as market structure.

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Industry Analysis

 Market Structure

•  um!er of "rms

• Industry concentration

•  Technolo#ical and cost conditions

•  $emand conditions

• %ase of entry and e&it

Conduct

• Pricin#

• Ad'ertisin#

•  ()$

•  Mer#er acti'ity

Performance

• Pro"ta!ility

• Social welfare

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Market Entry and ExitConditions

*arriers to entry

• Capital re+uirements

•

Patents and copyri#hts• %conomies of scale

•  %conomies of scope

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Expansion Activity

 ,ertical Inte#ration

• here 'arious sta#es in the production of a sin#le

  product are carried out !y one "rm.

  ori/ontal Inte#ration•  The mer#in# of the production of similar products

into

  a sin#le "rm.

 Con#lomerate Mer#ers•  The inte#ration of dierent product lines into a

sin#le

  "rm.

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Performance

•  Performance refers to the pro"ts andsocial

  welfare that result in a #i'enindustry.

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(eport 0ormat

• Introduction

 – *ack#round

 – 1!2ecti'es of the study

• 3lo!al scenario of the industry

• Indian scenario

• Structure of the industry

 – I 4 concentration ratio

 –Macro %n'ironment analysis

 – Competiti'e analysis50i'e forces6

• Conduct

 – Pricin# strate#ies

 – Ad'ertisin# intensity

 – ()$ intensity

 – Technolo#y intensity

 –

%&pansion strate#y

• Performance analysis

• Indian and #lo!al7other market - a comparison

• 0uture outlook

• (eferences