Question

The industry is home delivery services:

To what extent does pricing rivalry or nonprice competition (e.g. advertising) erode the
profitability of a typical firm in this industry?
		1 = Low; 2 = Medium; 3 = High
		Current Characterization	Future Trend
1	Degree of seller concentration?
2	Rate of industry growth?
3	Significant cost differences among firms?
4	Excess capacity?
5	Cost structure of firms: sensitivity of costs to capacity utilization?
6	Degree of product differentiation among sellers? Brand loyalty to existing sellers?                           Cross-price elasticites of demand among competitors in industry?
7	Buyers' costs of switching from one competitor to another?
8	Are prices and terms of sales transactions observable?
9	Can firms adjust prices quickly?
10	Large and/or infrequent sales orders?
11	Use of "facilitating practices" (price leadership, advance announcement of price changes)?
12	History of "cooperative" pricing?
13	Strength of exit barriers?
14	High industry price elasticity of demand?
15	Overall Assessment: Threat to Profits

Answer 1

The industry is home delivery services:

To what extent does pricing rivalry or nonprice competition (e.g. advertising) erode the
profitability of a typical firm in this industry?
		1 = Low; 2 = Medium; 3 = High
		Current Characterization	Future Trend
1	Degree of seller concentration?	2	3
2	Rate of industry growth?	3	3
3	Significant cost differences among firms?	3	3
4	Excess capacity?	1	2
5	Cost structure of firms: sensitivity of costs to capacity utilization?	2	2
6	Degree of product differentiation among sellers? Brand loyalty to existing sellers?                           Cross-price elasticites of demand among competitors in industry?	3	3
7	Buyers' costs of switching from one competitor to another?	1	1
8	Are prices and terms of sales transactions observable?	3	3
9	Can firms adjust prices quickly?	2	1
10	Large and/or infrequent sales orders?	3	3
11	Use of "facilitating practices" (price leadership, advance announcement of price changes)?	2	2
12	History of "cooperative" pricing?	3	3
13	Strength of exit barriers?	3	3
14	High industry price elasticity of demand?	2	2
15	Overall Assessment: Threat to Profits	2	2