Lesson 8: Types of Industries

This particular module is divided into two lessons, namely: the types of industries and the
application of SWOT Analysis as a tool in evaluating business opportunities.

After going through this module, you are expected to:

1. identify the different types of industries;
2. distinguish the different products and services of the business industries; and
3. discuss industry and environmental analysis as a tool in evaluating business
opportunities;

Many individuals think of industries on a larger scale as big businesses that produce goods with
big plants and machinery. Only a few known industries also produce goods and services in
different sectors of society such as agriculture, transportation, hospitality and others. As you go
through the lesson, you will learn that industries can be classified into different categories
for better understanding of the different types and make it easier to study.

Types of Industries

This lesson will focus on industries, although many school textbooks list only three levels, more
advanced books classify industry into five levels. The terms for each level originate from
Latin words referring to the numbers one to five.

Classification of Industry

1. Primary- Working with or extraction of raw materials/ natural resources. e.g., mining
activities, fishing, forestry and agriculture

2. Secondary- Making or converting raw materials into usable products through processing
and manufacturing. e.g., car manufacturing, bakeries

3. Tertiary- Service industries or providing essential services and support to allow other
levels of industry to function. e.g., transportation, finance, utilities, retail, housing,
banking

4. Quaternary- Dramatic growth of this new sector. Working with creation and transfer
of information (ICT, media sharing) including research and development, as well as
knowledge based services like consultation. e.g., ICT industries, R&D industries like
Synergy, Lexmark R&D, Strand

5. Quinary- Control the industrial and government decision-making processes includes

industry executives and management and bureaucrats and elected officials in
government. e.g., GOCC Executives
In the Philippines, we use the Philippine Standard Industrial Classification (PSIC). The
PSIC is a detailed classification of industries prevailing in the country according to the
kind of productive activities undertaken by establishments. The 2009 PSIC was patterned
after the UN International Standard Industrial Classification (ISIC) Rev. 4, but with some
modifications to reflect national situation and requirements.

Types of Industries

1. Agribusiness

A business that earns most or all of its revenues from agriculture. An

agribusiness tends to be large scale operations and deals with farming, processing and
manufacturing, packaging and distributing agricultural products.

List of Agribusiness in the Philippines:

1. Hog/ Pig Raising - swine raising is raising and breeding of domestic pigs as
livestock
2. Poultry Farming - raising of domesticated birds such as chickens, ducks, turkeys
and geese to produce meat or eggs for food
3. Cattle Raising - raising of cattle for milk, beef and hides
4. Goat Raising - raising goats for milk and meats
5. Rice Farming - planting rice for rice production
6. Vegetable Farming - planting veggies is an agribusiness specially learn how
to plant off-season varieties
7. Fish pens - raising fish in a pen such as catfish, oyster, prawns, pangasius,
bangus or tilapia is fun and exciting business, each species needs different
environment to grow either fresh or saltwater
8. Corn Farming - planting corn for consumption

Other profitable agribusiness are processed fruits and vegetables, seaweeds, tropical fruit
purees and juices, fresh tropical fruits, sugar, bio ethanol, etc.

2. Manufacturing

The process of converting raw materials, components, or parts into

finished goods that meet a customer’s expectations or specifications. There are many
laws and regulations that govern the manufacturing industry. The business will be
required to conform to all the licensing bodies may it be the national government or local
authority’s requirements.

Some of the best small manufacturing businesses that can be carried out are:
 1. Furniture Making – make or create furniture such as lockers, bookshelves,
showcases, chairs, tables, etc.
2. Drinking Water Business – sell drinking water package in a plastic bottles or
container
3. Soap Manufacturing Business – produce different soap products
4. Commercial Bread Making – easy and simple bread making business that can be
done at home

3. Retail and Services

Retail is the process of selling consumer goods or services to customers through

multiple channels of distribution to earn a profit and usually done directly to the
final consumer. Retailing includes subordinated services, such as delivery. The
term “retailer” is also applied where a service provider serves the small orders of a
large number of individuals. Recently, online retailing, a type of electronic commerce
used for business-to-consumer (B2C) transactions and mail order, are forms of
non-shop retailing.

Types of Retail Products:

1. Food Products – typically require cold storage facilities
2. Hard goods or durable goods – these are automobiles, appliances,
electronics, furniture, sporting goods, lumber, etc. and parts for them.
Goods that do not quickly wear out and provide utility over time.
3. Soft goods or consumables – clothing, other fabrics, footwear, cosmetics,
medicines and stationery. Goods that are consumed after one use or have a
limited period (typically under three years) in which you may use them.
4. Arts – contemporary art galleries, bookstores, handicrafts, musical instruments,
gift shops, and supplies for them

Service business – provides intangible products such as accounting, banking, consulting,

cleaning, landscaping, education, insurance, treatment, and transportation services

4. International Trade

International trade is the exchange of capital, goods and services across

international borders or territories, a significant share of gross domestic product (GDP).
While international trade has been present throughout much of history, its economic,
social and political importance has been on the rise in recent countries. It is the
presupposition of international trade that a sufficient level of geopolitical peace and
stability are prevailing in order for the peaceful exchange of trade and commerce
to take place between nations.

Trending globally gives consumers and countries the opportunity to be

exposed to new markets and products. Almost every kind of product can be
found on the international market: food, clothes, spare parts, oil, jewelry, wine,
stocks, currencies, and water. Services are also traded: tourism, banking,
consulting, and transportation. A product that is sold to the global market is an export,
and a product that is bought from the global market as an import. Imports and exports
are accounted for in a country’s current amount in the balance of payments.