3. Dr. NGPASC
COIMBATORE | INDIA
Dr. NGPASC
COIMBATORE | INDIA
Fundamental Analysis is the study of the various factors that
affect a company’s earnings and dividends.
Fundamental analysis studies the relationship between a
company’s share price and the various elements of its
financial position and performance.
8. Dr. NGPASC
COIMBATORE | INDIA
An industry analysis is a business function
completed by business owners and other
individuals to assess the current business
environment.
This analysis helps businesses understand
various economic pieces of the
marketplace and how these various pieces
may be used to gain a competitive
advantage.
Introduction
13. • costs are very high
• slow sales volumes to start
• little or no competition
• demand has to be created
• customers have to be prompted to try the
product
• makes no money at this stage
Dr. NGPASC
COIMBATORE | INDIA
1. Market introduction stage
14. Dr. NGPASC
COIMBATORE | INDIA
• costs reduced due to economies of scale
• sales volume increases significantly
• profitability begins to rise
• public awareness increases
• competition begins to increase with a few
new players in establishing market
• increased competition leads to price
decreases
2. Growth stage
15. Dr. NGPASC
COIMBATORE | INDIA
•
•
•
•
•
•
• costs are lowered as a result of production
volumes increasing and experience curve effects
• sales volume peaks and market saturation is
reached increase in competitors entering the
market
• prices tend to drop due to the proliferation of
competing products
• brand differentiation and feature diversification
is emphasized to maintain or increase market
share
• Industrial profits go down
3. Maturity stage
16. Dr. NGPASC
COIMBATORE | INDIA
• costs become counter-optimal
• sales volume decline
• prices, profitability diminish
• profit becomes more a challenge of
production/distribution efficiency than
increased sales
4. Saturation and decline stage
17. Dr. NGPASC
COIMBATORE | INDIA
Life cycle of an Industry
Pioneering Stage
Expansion Stage
Stagnation Stage
Declining Stage
18. Dr. NGPASC
COIMBATORE | INDIA
The first stage in the industrial life cycle of a new industry
Industry is not yet established
technology as well as the product are relatively new
may actually make losses with large injections of
capitaland has not many competitors
rapid growth in demand for output of industry.
a scenario where weak firms are ultimately eliminated
and a lesser number of businesses survive
Pioneering stage
19. Dr. NGPASC
COIMBATORE | INDIA
Industry is established
New companies start entering
Competition increases
Development of Strategies , new innovations to offer
improved product at lower price
Demand is more than supply
High return for investor at lower risk as Companies
will earn increasing amounts of profits and pay
attractive dividend.
Expansion stage
20. Dr. NGPASC
COIMBATORE | INDIA
Stage the growth of industrystabilizes
Sales may be increasing though at a slower rate dueto
changes in social habits and
development of improved technology.
emphasis on increasing profit rather than achieving growth.
Stagnation has either an abrupt ending by a new
innovation or could lead to declining stage
Stagnation stage
Debts are normally re-paid out of internal accruals.
Maturity slowly degenerates into stagnation and
sometimes even creeps into decline.
21. Dr. NGPASC
COIMBATORE | INDIA
Products are no longer popular.
A typical mature company loses its competitive nerve,
it declines over a period of time into bankruptcy and
winding up.
At this bleak stage, there will be no takers
The risk at this time in investing in these companies is
high but the returns are low, even negative.
An investor should get out of the industry before the
onset of the declining
Declining stage
25. Dr. NGPASC
COIMBATORE | INDIA
Which Ministry of Government of India is
related for India's Foreign Trade Policy?
1) Ministry of Defence
2) Ministry of External Affairs
3) Ministry of Commerce and Industry
4) Ministry of Home Affairs
Question
28. Dr. NGPASC
COIMBATORE | INDIA
Classification of Industry
Engineering
Paper
Electricity
Generation
Textiles
Cement
Steel Mills
and alloys
Chemicals &
Pharmaceuticals
Plantation
Cable &
Electrical
Sugar
Automobiles
Rubber
