Government policies can have a significant impact on the average profitability of firms in an industry. Government, however, is not included as a potential threat. Why should the model be expanded to include government? Why or why not?
Answer to relevant QuestionsIn particular, if an industry has large numbers of complementors, does that make it more attractive or less attractive, or does it have no impact at all on the industry’s attractiveness? Justify your answer.Perform an opportunities analysis on the following industries:The U.S. Airline Industry. Since the tragedies of 9/11, the U.S. airline industry has seen a consistent drop off in sales. This has forced many U.S. airline ...In the text, it is suggested that Boeing did not respond to Airbus’s announcement of the development of a super-jumbo aircraft. Is it trying to reduce the level of rivalry in the industry? Explain.When firms do engage in “forward pricing,” what risks, if any, do they face? A firm with a highly differentiated product can increase the volume of its sales. Increased sales volumes can enable a firm to reduce its costs. High volumes with low costs can lead a firm to have very high profits, some of ...
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