58 Part 1: The Tools of Strategic Analysis Challenge Questions 2.1. Your former

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58 Part 1: The Tools of Strategic Analysis Challenge Questions 2.1. Your former college roommate that buyers can be threats be reconciled calls you and asks to borrow $10,000 so that he can open a pizza restaurant in his hometown. In justifying this request, he argues that there mut be significant demand for pizza and other fast food in his hometown be- cause there are lots of such restaurants already there and three or four new ones are opening each month. He also argues that demand for convenience food will continue to increase, and he points to the large number of firms that now sell frozen dinners in grocery stores. What are the risks involved in choosing to lend him money? are available in almost any industry including declining ones. If that is true, is it fair to say that there is re- ally no such thing as an unattractive industry? with the need to satisfy buyers? 2.3. Government policies can have a significant impact on the average profitability of firms in arn industry. Government, however, is 2.6. If there is really no such thing as an unattractive industry, what implications does this have for the applicability of environmental threat analysis? not included as a potential threat. Why should the model be expanded to include government? Why or why not? 2.7. Describe an industry that has n 2.4. In particular, if an industry has large numbers of complementors, does that make it more attractive or less attractive or does it have no im- pact on the industry's attractiveness? opportunities. 2.8. Describe when the evolution of industry structure from an emerging industry to a mature industry to a de- clining industry is inevitable. 2 32.2. One potential threat in an indus- Justify your answer try is buyers' influence. Yet unless buy- ers are satisfied, they are likely to look2.5. Opportunities analysis seems to for satisfaction elsewhere. Can the fact suggest that strategic opportunities

Explanation / Answer

An industry that has no opportunity can be described as a dying industry. It is the industry that is struggling to make profits, maintain employment, and survive due to technological, geographical, or cultural reasons. When an industry is based on outdated technology for example because of introduction of digital technology photofinishing is a dying industry that has no opportunity to prosper again in the same business. Unexpected cultural shift may also snatch opportunities form a company to grow further and puts an industry on life support .for example because of increasing internet use, the Books, magazines, and newspaper publishing are in decline. Another example is dying camera industry due to cultural shift that normalized taking selfie’s with the cell phones.

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