Please read the following scenario and answer the questions below by providing the analysis based on the relevant theories and applicable examples. If your business earns superior profits, existing and potential competitors will do their best to get a piece of the success. It is essential for firms to examine a variety of business strategies to enhance the prospects of sustainable profitability. Out of all factors that impact an industry's sustainable profitability, this assessment focuses on the most damaging threat to sustainable profit, the entry of competitors into the market. Entry into the market heightens competition and reduces the margins of existing firms in a wide variety of industry settings. For this reason, the ability of existing firms to sustain profits depends on how barriers to entry affect the ease with which other firms can enter the industry including the formation of new companies (Wendy's entered the fast-food industry in the 1970s); globalization strategies by foreign companies (Toyota entered the U.S. automobile market the middle of the last century), and the introduction of new product lines by existing firms (computer manufacturer Apple now also sells the popular iPhone). Your paper will include one Industry Report and one Company Report that you recommend to the CEO of a company how to create a moat and prevent the threat of entry to the market. 1. Industry Report Please select an industry and write a rigorous industry report for your selected industry that incorporate the followings: The market structure of the industry by determining the concentration ratio in the industry and how market structure affects the entry into the market The nature of industry and the network effects The production structure of the industry, initial capital requirements, sunk costs, and economies of scale. The prospect of industry in the future in regard to technological innovations. Please read the following scenario and answer the questions below by providing the analysis based on the relevant theories and applicable examples. If your business earns superior profits, existing and potential competitors will do their best to get a piece of the success. It is essential for firms to examine a variety of business strategies to enhance the prospects of sustainable profitability. Out of all factors that impact an industry's sustainable profitability, this assessment focuses on the most damaging threat to sustainable profit, the entry of competitors into the market. Entry into the market heightens competition and reduces the margins of existing firms in a wide variety of industry settings. For this reason, the ability of existing firms to sustain profits depends on how barriers to entry affect the ease with which other firms can enter the industry including the formation of new companies (Wendy's entered the fast-food industry in the 1970s); globalization strategies by foreign companies (Toyota entered the U.S. automobile market the middle of the last century), and the introduction of new product lines by existing firms (computer manufacturer Apple now also sells the popular iPhone). Your paper will include one Industry Report and one Company Report that you recommend to the CEO of a company how to create a moat and prevent the threat of entry to the market. 1. Industry Report Please select an industry and write a rigorous industry report for your selected industry that incorporate the followings: The market structure of the industry by determining the concentration ratio in the industry and how market structure affects the entry into the market The nature of industry and the network effects The production structure of the industry, initial capital requirements, sunk costs, and economies of scale. The prospect of industry in the future in regard to technological innovations
