factors affecting growth and development of an industry

factors affecting growth and development of an industry

Different factors affect growth and development of an industry or an organization these factors are as a result of various forces which include; Macroeconomic forces, Global forces, Technological forces, Demographic forces, Social forces, and Political and legal forces. In this discussion, we are discussing the Charles Schwab industry.

Macroeconomic forces that affected the industry included; the foreign exchange rates, interest rates, gross domestic productions, inflation rates and currency stage in the economic cycle. These forces became extreme sometimes and discouraged the growth of the corporation, on some other level; they work in favour of the company.

Global forces are international factors that affect the corporation. One of these forces included the availability of the market globally. The other power involves laws that any organization has to follow to operate in the worldwide market.

Technological forces include recent technological development that has been put in place by their competitors. Similarly, the corporation dug into advanced technology to enable it too competes with other companies. The other force was the ability of other companies to copy its technology made it work hard to ensure that there is a new technology all the time. Availability of services improvement with the improve of the technology worked as another pushing force.

Demographic forces are socioeconomic characteristic of a population. Some of these forces included gender, age, education and race of the individuals who were working in the company.

Social forces that affected the corporation include cultural beliefs, personal attitudes and social values. These forces shaped the company in that it was able to integrate with different social factors that ensure that the community in the area accepted the company products. Other social forces included demographics of the population which included different ages and gender. Furthermore, the improvement of social health worked as another social force.

Political and legal forces help in the survival of the corporation. These forces included the political stabilities that the country has been enjoying. This gave a room for the growth of the company. Another strength was business-related laws that the government put in place was on the favour of the company. Some rules were more advantages to big corporations which were a challenge to the company.

1.2

The above forces are likely to affect the corporation in that they gave a room for development. Furthermore, they assisted in growth as well as the identification of challenges that could affect the company in future. Through these forces, opportunities are identified, and the solution to problems arrived at.

1.3

The risk of entry by potential competitors will have some threats likes increasing the rate of competition, lowering the prices, and loss of market.

The intensity of rivalry among established companies within Charles Schwab Corporation will lead to the use of more capital, thus reducing the profit this company gets. Another threat would be difficulties in penetrating to different markets.

The bargaining power of buyers is of a threat if its high than for the company. Some risks are lowering of prices and profit, loss of customers if not entirely convinced. Opportunities if the company has a higher bargaining power would be the likelihood of winning new customers, expanding its market, and rising the product price leading to high profit.

The bargaining power of suppliers will be of thereat if the supply has a reliable bargaining power than the corporation. One of the threats will be the increase in competition in the market; the other one will be lowering the market price. If the company has a higher bargaining power, high costs and business being more attractive will be some of the opportunities.

Substitute products will be a threat in that some customers will stop using a product from Charles Schwab Corporation. Another threat is that there will be prices decrease.

Complementary will always be providing an alternative. This will work as an opportunity for the company for it will be able to identify changes and work on them.

1.3.7

The risk of entry by potential competitors will have some threats likes increasing the rate of competition, lowering the prices, and loss of market. The degree of this risk is high. Analyzing the corporation, this is a risk because the company tend to lose customers as well as lower its income. This may lead to it collapsing.

The threat in the intensity of rivalry among established companies within Charles Schwab Corporation will be competitors. This is a medium threat. It is a threat because a lot of company income will be used to solve it.

The bargaining power of buyers is a threat by itself. Its degree is low for the company can solve it without the use of resources. It is classified as a threat because the corporation may lose its customers for not being satisfied with the information they might get.

The bargaining power of suppliers has an opportunity of identifying new working technique. This is an opportunity because it gives new developing chances.

Substitute products have a threat of losing business’ customers. The degree of this threat is high.

1,3.8

From the above discussion on risks and opportunities, I can conclude that the corporation still has a room of expansion even though there are different challenges along with it. It is also clear that any attribute that directly relates to the company has associated impacts.

1.4.1

Charles Schwab Corporation is in its maturity stage. This is because it has developed and has reached into different markets. Furthermore, there is minimum revenue experienced by the corporation.

1.4.2

The immediate and long term product and pricing tend of Charles Schwab Corporation, including giving loans to other corporation as well as giving products of high quality.

1.4.3

The market demand in Charles Schwab Corporation is offering growth. This is because it provides an opportunity to identify different markets.

1.4.4

The risks of potential competitors are that they may fraud the market. Furthermore, they may lead to all the loss of the customers. Besides, a lot of capital may be used to maintain customers demand.

1.4.5

The rate of change of technology and other fundamentals of the industry is mainly determined by the requirement in the industry.

1.4.6

The business in Charles Schwab Corporation has adopted changes that come along. Moreover, the corporation has been in succession preparation to changes that come along. The fist preparation is that it has set up some finances that may be used in case there is an emergency.

1.4.7

The corporation faces a competitive threat which makes it uses a lot of its resources in maintaining the market. This threat is serious in that it makes the company lose a lot of its capital.

1.4.8

Its customers mainly drive the corporation. This is because most of the decisions that are made are the decision to ensure that customers demand have been met.

1.4.9

For the success of this corporation, I will have to look for ways to succeed despite the general industrial slowdown.

1.4.10

I anticipate major transformations in technology, production processes, and customer buying patterns that could affect the competitive position and profitability. This will help in securing my place in the current market.