Industry characteristics and Firm Strategy are two prominent reasons for financial differences of companies  Unique economic features within industries cause financial statements to vary from one industry to another  Companies within the same industry tend to very in financial characteristics as well due to different operating procedures and strategies  .

beauty products. OTC remedies. and medical diagnostics and devices  Brand development and management are major element of massmarketing strategy  .     World’s largest prescriptionpharmaceutical company Broad pipeline of ethical pharmaceuticals Strong R&D budget Divested several of its non-pharmaceutical businesses Partner of choice for licensing deals with other pharmaceutical and biotechnology firms Diversified healthproducts company  Manufactures and massmarkets broad line of prescriptions.

etc. .National brewer of massmarket consumer beers sold under various brand names  Operates extensive network of breweries and distribution systems  Owns several beerrelated businesses (snack and aluminumcontainer manufacturing. higher prices Outsources majority of brewing activity Financially conservative Recently undergone cost-savings initiative to counterbalance sure in packaging and freight costs.)       Seasonal and yearround beers Lower supply. theme parks.

price. and purchases through website    Differentiable line of computers and related equipment/software Recovering from decline in market share Aggressive retail strategy aimed at attracting high volume of consumer traffic into stores .   Mail-order sales of built-to-order computers and related equipment Assembler of PC components manufactured by suppliers Customer designs.

and videos solely through internet  ~75% of sales is media.   Vast retail-store presence Leader in traditional book retailing. through “community store” concept and discount policy Online presence and owns publishing imprint Sells books. but also sells electronics and general merchandise  Only recently became profitable  Aggressive strategy of acquiring related online businesses. music.  .

and a distribution network Rationalizing capacity: closing inefficient mills. and technical specialty papers. paperboard.    World’s largest maker of paper. as well as towel and tissue products  Products marketed under branded labels  Purchases wood fiber used in manufacturing process on the open market  . and packaging Vertically integrated Owns Timberland. cost-containment initiatives. writing. selling nonessential assets Small producer of printing. numerous facilities.

and fastening systems Sells to retailers.   Global manufacturer and marketer of power tools. wholesalers. accessories. home improvement products. and distributors Appear under various well-known brand names Manufacturers and markets high quality precision tools and diagnostic-equipment systems for professionals  Sells through technical representatives and mobile franchise dealers  Provides financing for franchisees and for large customer purchases  . hardware.

breadth of merchandise.Carries wide variety of nationally advertised general merchandise  Known for low-prices. and volume-oriented strategy  Most stores are leased and located near network of distribution centers  Plans to expand internationally and in large urban areas       Rapidly growing chain of upscale discount stores Matches other discounters’ prices on similar merchandise Partnerships with leading designers Recently divested several non-discount department-store businesses Company offers credit to qualified consumers .

     Diversified media company Generates most revenue from newspaper sales globally Strong central controls Competition is fierce Recently built large HQ office building Owns several newspapers in small communities throughout Midwest and Southwest  Analysts say this firm holds a portfolio of small local monopolies in newspaper publishing  Significant amount of goodwill on balance sheet .acquisitions  Decentralized decision making and administration  .

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