2. Based on the medical technology industry (ex. AlphaProTech Ltd., Agilent Technologies, Inc., and Pro-Dex, Inc.), discuss the following questions:
a. Is the industry cyclical or defensive industry?
b. Which life cycle stage the industry is currently in?
c. How do you predict the industry’s overall performance in the future?
a. The industry is defensive industry. This is because they
provide stable returns even during slowdown or weakening of economy
because healthcare is an essential item.
b. Th industries are in growth phase as they are growing fast and
maturity has not been attained yet.
c. With global pandemics, health care, preventive and curative
approach becoming a serious issue, these companies will perform
very well. Moreover they are recession proof, hence they would
provide stable earnings when other companies would be losing
money.
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