To Forecast Industry Profitability Consistently Accurately, Professional Analysts Have To

Multiple Choice

To forecast industry profitability consistently accurately, professional analysts have to:

A) Look at the link between performance and industry structure, then to identify major trends and to examine the link between these trends and the forces of competition
B) Look at the probability of new entries in the industry, to determine the major trends, and to forecast the probable overall industry profit
C) Determine the five larger players in the industry and their relative bargaining power in regards to their buyers and customers, and to identify their strengths and weaknesses
D) Develop a deep understanding of how the industry creates value now and in the future, whether they use the tools described in the chapter or not.