what Industry is Ulta Beauty in? (Is it Specialty retail industry or beauty retail industry)

After determining the industry determine dominant economic characteristics of an industry

Here is an example of a dominant economic characteristics of the pharmaceuticals industry:

Dominant Economic Characteristics (Features) of an Industry

"Pharmaceuticals industry"

Economic Factors to Consider:

Market Size Very Large; Billions

Market growth rate Growing

Product characteristics (e.g., standardized or differentiated?) Differentiated

Availability of experience curve effects and scale economies Scale economies- yes; Experience curve-yes

Capacity utilization? Surpluses or shortages?

(auto industry 2008: giant surplus; 2011: shortage, opening new plants)

Maybe surplus, probably in balance

Demand stability Yes

Capital requirements Gigantic

Degree of vertical integration Yes

ProfitabilityYes

Other Issues to Consider

Lifecycle stage

Severity of problems facing the industry

Degree of risk and uncertainty

Pace of technological change

The economic characteristics impose boundaries on the kinds of strategic approaches a company can pursue; *however*, a company which is positioned well and implements its strategy effectively can, under the right circumstances , still be consistently profitable (cf. Southwest Airlines).