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Topic Medical Industry:
Can use outside sources to support but need to be valid.
• Identify the major firms in the industry. Determine to the extent possible the relative Market shares of these firms.
• Discuss the cost structure of the industry. (Obviously, this will be a qualitative discussion - I do not expect you to provide information on the cost functions that firms face.) What are the significant cost factors (e.g., specific raw materials, R&D expenditures, etc.)? Are there are economies of scale or economies of scope? Where do these economies come from (e.g., high entry costs, high R&D costs, etc.)?
• Discuss demand in the industry. Is it elastic or inelastic? (You probably won't find much evidence or information on demand - you will have to infer this from your knowledge of the industry. For example are there close substitutes? Are the products necessities or luxuries?) Is demand growing or declining? Do consumers have similar preferences or do consumers differ a lot in preferences?a
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