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Great Company Or Growing Industry?
Article by February 24 2013| Filed Under » Economies of Scale, Fundamental Analysis, Growth Investing, Microeconomics, Sector - Professional Scientific and Technical Services
It is no accident that companies within a particular industry move in lock-step with one another. Companies in a single industry are forever bound by the type of product or service that they provide, and they are constantly competing with one another for market share, consumer acceptance and technological leadership in their particular sub-sectors. These competitive and consumer forces shape an industry's corporations and determine the status of the industry as a whole. These forces have followed roughly the same patterns over time. Here we take a look at these stages and how they affect the companies that follow them.