Topic one industry perspective - DMBA 630 9047 Marketing and Strategy Management in the Global Marketplace (2178)

A medium to long term industry is one that develops overtime. Industries such as the automobile,
technology, and healthcare take years to achieve significant growth. This growth can often only be
achieved through larger capital or labor investments. These industries may require capital investments
such as high-tech machinery or advanced technology to create your products and rely heavily on
suppliers to provide quality materials. This is very true of the automobile and technological industries,
which require large amounts of money to support the creation of the products being sold. Similarly, some
industries, such as healthcare, require labor costs, or human capitol (Khanna, 2013). This includes hiring
people with advanced degrees, which has a higher costs salary.
On the reverse, some industries are better in the short-term and can take less than a year to obtain larger
profits. While the profit is significant in the short-term, this does not mean it will be more profitable in the
long-term. Industries that fall into this category would include consumer goods and financial services.
Unlike the other industries, these don’t have significant costs in the beginning.
I do think some industries are inherently more profitable than others. I think the forces mentioned by
Porter (N.d) could be applied to industries, showing the impacts on profit. Industries that are overfilled
with companies may not be best for new entrants, due to competition. Products that can be easily
replaced or products where the supply is greater than the demand can impact the profit. Being reliant on
a supplier can increase costs and thereby decrease profit. Biery (2016) mentions that financial and health
services can be more profitable than other industries because it is selling a service, not a product, which
reduces upfront costs. The long term growth of the healthcare sector can further be seen within Fidelity,
which shows over 137% increase over 10 years. Consumer goods, such as grocery stores, have smaller
profit margins because there is more competition. Grocery stores want to maintain and gain customers,
which requires reducing prices on their items to beat out competition.
In choosing an industry for my team’s strategy project, I would look towards the healthcare industry
because this is an industry that is continuously evolving overtime. This is an industry that will do better in
the long-term and because of the aging population, it is an industry that will continue to be one of the
most relevant and important industries. People rely on the evolution of healthcare.