The term sedulousness structure refers to the human activity and size of it distribution of firms in an manufacturing. The number of firms in an fabrication may run into hundreds or thousands. The existence of a outsize number of firms in an assiduity reduces opportunities for coordination among firms in the industry. Hence, generally speaking, the take of competition in an industry rises with the number of firms in the industry. The size distribution of firms in an industry is important from the perspective of both(prenominal) business policy and public policy. If all firms in an industry are small in size, relative to the size of the industry, it is a dis hallowed industry. If a small number of firms control a large share of the industrys output or sales, it is a consolidated industry. The type of competition in fragmented industries is generally rattling different from that in consolidated (or concentrated) industries.
We allow be particularly interested in the behavior of oligopolies, industries in which a very small number of firms accounts for a very large share of the industrys output. In the coupled States, industries have been becoming ever more consolidated over time. In fact, over half of all U.S. industries today are oligopolies.
The structure of an industry affects the conduct of industry members (sellers and buyers) which, in turn, affects industry performance (profitability). This is the STRUCTURE-CONDUCT-PERFORMANCE (S-C-P) Model from industrial organization economics (Scherer, 1996).
Uses of Industry Structure
As indicated above, the concept of industry structure is effectual in both business policy and public policy. We willing discuss each use briefly.
Business Policy and dodging:
By looking at the structure of an industry, one batch often learn a lot about competition, rivalry, institution barriers, and other aspects of competitive dynamics in that industry. Analysis of industry structure is an integral part of industry analysis in strategic management. In...If you want to get a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment