Core Disciplines: Economics; International Business
DESCRIPTION: This note is intended to provide insights into variation across firms and industries. It reviews the various types of variation among firms--variations in revenues, profits, size, employment, capital intensity, output per worker, profitability etc. Data tables, timelines and reports are provided as support. This note is intended to show students that these characteristics are important to consider when analyzing firms or setting strategy because they affect how firms compete with each other. This case is included in Module 1 of the course Business Thought & Action.
TEACHING POINTS: "This note presents a set of tables (with commentary) that illustrate variation across firms and industries. The data include: Firm size and profitability (in 2009 and overtime) Firm market capitalization, Industry average revenues and number of employees Industry entry and exit rates (i.e. churn) by industry Industry concentration ratios The note supports a discussion of what factors cause industries to systematically differ (capital intensity, switching costs, economies of scale, intangible assets, etc.) and how these factors affect the ways in which firms compete (cost-based vs. differentiated competition) The note is used as a complement to company cases that illustrate generic types of competition (for example, Zantac and Walmart)"
Secondary Tags: Globalization; Globalization of Services
Sales Rank: #296