Examples of European firms that operate in the pharmaceutical industry are GlaxoSmithKline and Bayer. Examples of European

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Examples of European firms that operate in the pharmaceutical industry are GlaxoSmithKline and Bayer. Examples of European firms that operate in the tour operating industry are Thomas Cook and TUI. Rate the pharmaceutical and tour operating industries as high, medium, or low on the following dimensions of industry structure:

1 Rivalry.

2 Threat of new entrants.

3 Threat of substitute products.

4 Bargaining power of suppliers.

5 Bargaining power of buyers.

Given your ratings, which industry would you expect to earn the highest returns?

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