Industry Structure
Name
Industry Structure
Description
The comeptition and concentration of the industry will affect the creation of software
Enablers
- Concentration
Industrial concentration occurs when a small number of companies sell a large percentage of an industry's product. The number firms creating software would drive the competition in the software industry. This is important factor since this can drive the prices of the product in industry.
- Company Size
Presence of one large company can lead to monopoly. A monopoly is an enterprise that is the only seller of a good or service. In the absence of government intervention, a monopoly is free to set any price it chooses and will usually set the price that yields the largest possible profit. Just being a monopoly need not make an enterprise more profitable than other enterprises that face competition Similarly if there are
- Dergulation and Investment
The foriegn direct investment depending upon the type of investment and industry of investment will effect the economy of the country.
- International trade
Each economy depend upon the trade balance created by import and export.
- Education level
The education level drives the industrial and economic growth of the country.
- Globalization
Globalization effect on the following aspects of economy viz., flow of capital, goods, services and people, demand and supply elasticity.
Inhibitors
All the forces acting as enablers for economy can act as disablers too, under certain condition. For example
- Technology Industry
A fall of industry can inhibit the growth of industry.
Paradigms
Nil
Experts
Timing
The forces affecting economy continuously change.
Web Resources
http://www.econlib.org/library/Enc/IndustrialConcentration.html