In analyzing a firm's profit potential, an analyst must first assess the profit potential of each...

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In analyzing a firm's profit potential, an analyst must first assess the profit potential of each industry in which the firm is competing. While specific industry profitability can change over time as the industry evolves, in general, the profitability across industries has tended to differ systematically. Examine the critical drivers of industry profitability with appropriate examples. (25 marks) In analyzing a firm's profit potential, an analyst must first assess the profit potential of each industry in which the firm is competing. While specific industry profitability can change over time as the industry evolves, in general, the profitability across industries has tended to differ systematically. Examine the critical drivers of industry profitability with appropriate examples. (25 marks)

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Industry profitability is determined by a variety of factors some of which are internal to the industry and some of which are external Understanding these drivers of profitability is essential for ana... View the full answer