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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Fitness drink industry

Fitness drink industry

Q Jason Murphy is thinking about starting a firm in the fitness drinks industry. When asked by a potential investor if he had studied the industry, Jason replied, “The fitness drink industry is so full of potential, it doesn’t need formal analysis.” Will Jason’s answer satisfy the investor? In what ways will Jason limit his potential if his current attitude about the importance of industry analysis doesn’t change?

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Jason’s answer will not satisfy the investor as a potential investor may not accept the proposal for business without a formal analysis of the potentiality of a particular industry. Industrial analysis is important before starting a business in any kind of industry, therefore, this step cannot be overlooked. Jason is expected to complete a proper industry analysis for knowing the current competitors, bargaining power if the suppliers, bargaining power of the buyers, substitute products and threat of new entrants.