Problem:
Select an industry of your choice from the list below. Evaluate the industry in terms of the five factors that determine an industry's intensity of competition. Based on your analysis what are your expectations about the industry's profitability in the short run (1-2 years) and the long run (5-10 years)? The response does not have to include assessments of the specific rates of return; this is more of a qualitative exercise. The industries are (as defined by the S&P 500):
- Energy
- Materials
- Industrials
- Consumer discretionary
- Consumer staples
- Health Care
- Financials
- Information Technology
- Telecommunications
- Utilities