he business environment allows for like goods and services to be produced for economic gain and customer consumption. The major source of revenue for groups of companies that sell like products and services is characterized as an industry. Industries are classified in a variety of ways; one way starts with the three-sector economic theory, which includes primary (extractive), secondary (manufacturing), and tertiary (services). Some research authors will also include a fourth level, quinary, a sector for culture and research. Below the economic classification of industries, falls the International Standard Industrial Classification (ISIC), which divides similar industries according to the markets, functions, and products and services that businesses provide, known as SIC codes. Standard Industrial Codes (SIC) comprise a unique 4-digit code that identifies the hierarchy of market to products and services provided. Using the unique SIC code, users can research and begin to construct an industry overview. An industry overview or industry analysis provides basic information about an industry that a business will operate within. The industry overview can include a list of major competing companies, the number of people working in the industry, a reference point of qualifications needed to enter various job positions, the earnings of the industry in recent years, and projected market growth estimates. Graphs and charts may be used to offer a visual representation of historical industry data and other key metrics that are helpful to investors and financiers of the company. Why This Matters: Most students are unfamiliar with the concept of product industry and industry overview (analysis), often overlooked by new business and or small business owners. The industry overview is critical to understanding the economic factors, the competitive environment, and the potential market value and profit of the industry. If the market is volatile, or if there are too many competitors, the market is considered to be saturated, with little opportunity for sustainable profits. Business owners may also use the information from the industry overview to conduct additional market research on the market and its customers. Conducting an industry overview does not guarantee success in the market. Collecting the information needed to develop the industry overview takes more time than making the decision to move forward in business. Business owners should utilize information from a variety of business sources, i.e., industry publications; industry associations; local Chamber of Commerce, etc. before making a final decision to start a business. Your Task: Read the industry details about Voluntrip, and then answer the multiple-choice questions that follow. Next, using the details provided, write your own industry overview for Voluntrip. A Closer Look: VoluntripIndustry Details Ari, Luiz, and Sarita have conducted preliminary research for their company and have determined that Voluntrip operates in the Transportation and Public Utilities industry, under ISIC category 4724 Travel and Tourism Agencies, which is described as establishments primarily engaged in furnishing travel information and acting as agents in arranging tours, transportation, rental of cars, and lodging for travelers (SICcode.com, 2017). The Travel & Tourism Industry is segmented/categorized into more than 50 sub-categories, however, after careful scrutiny of the categories, the owners could not successfully identify one that exactly matches the services they hope to offer through Voluntrip. Since Voluntrips core business is to provide travel services (planning and touring), they decide to categorize its business as a Travel Agency that provides custom travel arrangements. From the information gathered, the owners are able to ascertain that 19,788 businesses exist in the Travel & Tourism industry and that it employs more than 240,000 people. The industry has a market worth of more than $7 trillion, which accounts for all domestic and global travel. Key players in the industry have evolved from traditional brick-and-mortar locations to wholly online services. The major online competitors are Priceline and Expedia, while AAA and smaller travel planners occupy the local market. Despite the competition, the owners of Voluntrip believe their company will provide a unique service and fill the market gaps, serving segments that are not currently being served today. The owners plan to conduct further research to identify their exact target market, market value, and market growth for its service. INSTRUCTIONS: Consider the research that Ari, Luiz, and Sarita have gathered about the Travel & Tourism industry and write a brief industry overview for Voluntrip. As you work on each position, consider these guiding questions: ANSWER THESE QUESTIONS PLSSS INDUSTRY OVERVIEW What industry segment/category will the business operate in? What product/service will the business offer in the industry? Who are the major competitors in the industry? What stage is the industry in? Growth? Decline? Stable? What business activities will you need to outsource?