Industry Analysis : Industry Characteristics Essays
• Industry Characteristics A shift towards emerging market production with local manufacturing plants
Many countries are interested in entering the market and encourage the creation of the technology industries.
World Market demand is supposed to double in 6 years.
• How are market growing & production capacity
Markets are starting to grow outside the areas that production typically happens in, and starting to enter resource rich emerging markets. This opens the door for greater production and cheaper prices due to economies of scale. The emerging markets are looking for potential benefits of the industry to improve their own economic well being.
• Role of Transport Costs & Tariffs
The finished products differ in the tariff that is charged per economy. Paradiso has the smallest tariff compared to the countries in EXCON, while Tropicalia has the most expensive cost due to having the largest tariff.
• What are the economics of serving each market from different locations?
One possibility is potentially higher prices due to import and transaction costs. While trying to serve many different companies, you have to somehow reach economies of scale. This needs to be done by either producing wholly at home, or importing certain parts to the product that will reduce your manufacturing costs. When companies are serving markets across different locations, those types of costs and strategies are used to do so efficiently.
• What industry…