What is the focal industry structure? Show all computations. Provide a one sentence rationale for your focal industry structure conclusion. Codify key assumptions, if any, used in your assessment of focal industry structure

Performance and advantage. a. What is Progressives proportional profit margin1 in 1999? For example, for each $100 dollars in revenues, what is Progressives profit or loss? b. Does Progressive possess an advantage in 1999? Why or why not?

Exhibit 1 Property-casualty Net Premiums Written by Product Line, United States, 1999 Source: Adapted from Standard \& Poor's, Industry Surveys Insurance: Property-Casualty, January 11, 2001, p. 18. 602175 Innovation at Progressive (A): Pay-a Exhibit 3 Auto Insurance Distribution Channels by Agent Type, 1999 Source: Company Annual Reports, 1999. Exhibit 4 Top Ten U.S. Auto Insurers by Market Share, 1999 Source: Adapted from The Fact Book 2001 (New York: Insurance Information Institute, 2001) p. 48