Determine whether the statement is true of false.

Financial Analyst conducts strategic analysis to form a hypothesis for the outlook of an industry and whether the company will grow faster or slower or be more or less profitable.

Companies optimize profits through price advantage (company's price realization > market clearing price) or cost advantage (company's unit costs < market clearing price).

When firms have material revenues and operating profits in multiple segments, the Financial Analyst often performs strategic fundamental analysis on each segment separately.

In manufacturing industries, larger companies enjoy significant 'network effect' or more efficient production as output volumes increase.