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FINANCIAL INFORMATION ANALYSIS Business Policy Analysis Application Exercises psyche 3 One of the fastest growing industries is the reposition stay industry, which supplies recollection chips for personal computers and other electronic devices. Yet the average profitableness has been truly measly. Using the industry analysis framework, list all the potential factors that might explain this app atomic number 18nt contradiction.

Concentration and balance wheel of Competitors The concentration of the repositing chip market is relatively low; There are many players competing on a orbicular basis, none of which has a dominant share of the market; ? general price wars as individual firms lower prices to gain market share; Degree of differentiation and Switching Costs In general, keeping chips are a commodity product characterized by dwarfish product differentiation; While some product differentiation occurs as chip makers squeeze more memory on a single chip or design item memory chips to meet manufacturers specific power and/or sizing requirements, these differences are typically short-lived and have not importantly reduced the level of competition within the industry; Because memory chips are typically interchangeable, switching costs for users of memory chips are very low, encouraging buyers to look for the lowest price for memory chips; musical scale/Learning Economies and the Ratio of Fixed to Variable Costs Scale and learning economies are both important to the memory chip market; Memory chip production requires significant investiture in clean production environments Moreover, the yield of acceptable chips goes up as employees learn the intricacies of the extremely complicated and sensitive manufacturing attend; Finally, whereas investments in memory chip manufacturing plants are typically very high, the variable costs of materials and labor are relatively low, providing an inducing for manufacturers to reduce prices to fully utilize their plants dexterity;... If you want to get a full essay, order it on our website: Orderessay

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