Industry Classification Essay
Exercise and Fitness: A Rapidly Growing Industry As baby boomers are now getting to their mid 50s, many of them are spending a lot of time working out at the gym (Chan, 2002). The number of health club members over age 55 climbed from 1. 9 million in 1990 to 7. 4 million in 2000—a 289% increase in 10 years. Club membership once used to be dominated by the 18 to 34 years old age group, but in the recent years, this has been shifting to a more mature demographic—one which has a higher disposable income (Chan, 2002). The International Health, Racquet & Sportsclub Association says that this trend is likely to continue (as cited in Chan, 2002).
Another industry that is benefiting from the growing emphasis on physical fitness is the exercise equipment industry. Sales of treadmills, exercise bicycles, weight benches and other apparatus to households reached $5. 8 billion in 2000 versus $1. 9 billion in 1990. (Chan, 2002). And this rapid rise will continue to grow on the years forward. Dry Cleaning: A Fragmented Industry U. S. consumers today tend to spend less on dry-cleaning because of environmental concerns and changes in workplace dress code, and this trend will continue to impact this industry.
However, the industry will still benefit from the baby-boomer generation as they grow older and continue to have less time and look for time-saving conveniences. Economists with Integra Information are forecasting average annual growth in the mid 4 percent range for the next couple of years (Integra 2002). Poultry: A Mature/Slow Growth Industry The US Department of Agriculture has recently released its 10-year outlook on the poultry industry, this time stretching to 2020. Further growth is expected, but in all livestock sectors, strong figures as in the past years will not be reached.
Continuing near-term production reductions in the livestock sector, along with some recovery in meat and poultry exports, would result in higher consumer prices and lower per capita consumption. Thus, the annual consumption of red meats and poultry is expected to fall from over 221 pounds per capita in July 2004 to less than 206 pounds in 2012. As production increases over the remainder of the projection period, per capita consumption of red meats and poultry would resume growth but would only rise to about 215 pounds by 2019 (USDA 2010).
Camera Film and Film-Developing: A Mature Industry This mature industry certainly captures the changes in technology well, with significant changes occurring within the industry as it shifts from the traditional scene to the point and shoot digital format. With low concentration and intense competition, mergers are expected in this relatively volatile environment. There are low barriers to entry and regulation is light, but this relatively capital oriented and globalized market creates a still picture for those wishing to enter (US Industry Report 2010). Wine, Beer and Liquor Retailing: An Industry that is Declining Overall, growth in beer consumption has been slow.
Rising demand for both local and imported wines as well as strong demand for pre-mixed drinks and distilled spirits, particularly vodka, has contributed to the lackluster performance of the beer and ale segment. In the future, this mature industry will have to contend with the continuing decline in overall per capita alcohol consumption and increasing competition from other industries that also sell alcoholic beverages (US Industry Report 2010). Watch: A Declining Industry After the worst one-year decline in demand for Swiss watches since the 1970s, the industry hopes for a brighter 2010.
The industry has been grappling with weak consumer sentiment, tight credit markets, personnel costs, and a smaller bonus pool for bankers who help drive sales (Swiss watch boutique 2010). Cell phone: A Rapid-growth Industry This industry can be considered as one of the fastest growths besides the Internet. Cell phone is now used for necessity, and companies are capitalizing on this by investing on advanced technology to enhance basic cell phone features. In the US alone, there are approximately 120 million mobile-phone users (US Industry Report 2010).
Recorded Music: A Mix of Both Turbulent and a Declining Industry With the proliferation of free music sites and peer to peer share network programs, mp3 file-sharing and downloading has become an established trend across all age demographics who love music. As a result, the recorded music industry has been trying its best by promoting anti-piracy campaigns, with minimal success. They also offer promotions if one opts to buy CDs such as discounts, a limited edition package, and many more. The Rapidly Growing Computer Software Industry Software industry is pointing the mouse in the right direction as technology changes exponentially.
This highly competitive and growing industry requires massive inputs of labor and R&D. The concentration is medium despite the variances between segments like a dominance in the operating system software. The presence of many small firms and individuals indicates that entry into niche areas of the software market can be achieved, while large players are set to monopolize the larger segments. The already high and increasing level of globalization means revenue is dramatically affected by movements in exchange rates (US Industry report 2010).
Newspaper: A Declining Industry This industry is in decline as circulation numbers diminish. Pressures on potential readers’ time and new media that also provides news content, including Internet sites and a larger range of magazine titles, have detrimental effects on this industry’s revenue (US Industry report 2010). Conclusion Considering the trends in all the listed industries, we can observe some common factors that may have led to their current classifications. Factors such as the baby-boomer market, advanced technology, effects of economic crisis, and surplus of cost effective alternate products proliferate todays market.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 25 September 2016
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