If your business earns superior profits, existing and potential competitors will do their best to get a piece of the success. It is essential for firms to examine a variety of business strategies to e
Your CLA2 is a paper of minimum eight pages, eight references,APA formatted, including one Industry
Report and one Company Report that you recommend to the CEO of a company how to
create a moat and prevent the threat of entry to the market.
1. Industry Report
Please select an industry and write a rigorous industry report for your selected industry that
incorporate the followings:
● The market structure of the industry by determining the concentration ratio in the
industry and how market structure affects the entry into the market
● The nature of industry and the network effects
● The production structure of the industry, initial capital requirements, sunk costs, and
economies of scale
● The prospect of industry in the future in regard to technological innovations
2. Company Report
Now assume you are managing a company in this industry and are asked to write a
Company Report about the long term strategic decision making of the company. The
purpose of this report is to recommend a few policies to the CEO that assures a
sustainable competitive advantage and long term profitability for the company.
Please include the following variables in your Company Report:
● Sustainable market share and how it can be achieved
● Branding, reputation, and a considerable base of loyal consumers
● The managerial efficiency in strategic decision making regarding:
o The integration and merger activity, vertical and horizontal integration
o Preventing entry of rivals by pricing and cost policies such as limit pricing,
predatory pricing, and raising rivals’ fixed or marginal costs
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