If your business earns superior profits, existing and potential competitors will do their best to get a piece of the success. It is essential for firms to examine a variety of business strategies to e

Your CLA2 is a paper of minimum eight pages, eight references,APA formatted, including one Industry

Report and one Company Report that you recommend to the CEO of a company how to

create a moat and prevent the threat of entry to the market.

1. Industry Report

Please select an industry and write a rigorous industry report for your selected industry that

incorporate the followings:

● The market structure of the industry by determining the concentration ratio in the

industry and how market structure affects the entry into the market

● The nature of industry and the network effects

● The production structure of the industry, initial capital requirements, sunk costs, and

economies of scale

● The prospect of industry in the future in regard to technological innovations

2. Company Report

Now assume you are managing a company in this industry and are asked to write a

Company Report about the long term strategic decision making of the company. The

purpose of this report is to recommend a few policies to the CEO that assures a

sustainable competitive advantage and long term profitability for the company.

Please include the following variables in your Company Report:

● Sustainable market share and how it can be achieved

● Branding, reputation, and a considerable base of loyal consumers

● The managerial efficiency in strategic decision making regarding:

o The integration and merger activity, vertical and horizontal integration

o Preventing entry of rivals by pricing and cost policies such as limit pricing,

predatory pricing, and raising rivals’ fixed or marginal costs