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Is high industry growth rate reflect positively to the cost,price,market expansion,what is the position come for ind resources suppliers,new entrants?

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Question added by baraa kamal , Marketing and Sales Director , BBC Paints
Date Posted: 2013/12/08
Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Industry growth rate reflects positively on the cost (by achieving economies of scale), market expansion due to increasing adoption of the product/service. Prices vary based on competition and the industry's elasticity of demand.

Suppliers are a component of the supply chain and they are expected to grow as well, the catch here is the avialability of raw material.

New entrants will depend largely on the barriers to entry into the industry. For example, I have noticed growth in the passenger aircraft industry during the last air ahow in Dubai, I didn't see and do not expect to see new entrants in the industry. I believe the the barreirs to entry are too high due to initial investments, technological experience, and govenrnment regulating issues.

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