Unit ko samjho · NISM Series XV

Industry Analysis

12 questions is unit mein

Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.

Is unit mein kya hai

An industry once required heavy distribution infrastructure, but digital channels have sharply lowered setup costs and customer access barriers. Other things equal, which Porter force has become more threatening to incumbent profitability?
An industry that previously grew rapidly now faces slowing demand growth, excess capacity and intense price competition. Weaker firms are exiting or being acquired. Which stage best fits this description?
A manufacturer depends on a specialised input supplied by only one qualified vendor. There is no close substitute, switching would require costly redesign, and the input is critical to production. Which competitive force is strongest in this fact pattern?
When forecasting a regulated electricity distribution utility, which factor is likely to be especially important to sustainable earnings?
Compared with a consumer-staples producer, a commercial-vehicle manufacturer will generally be expected to have:
An industry sells 5 million units annually at an average realised price of ₹2,400 per unit. Ignoring taxes and channel inventory changes, the approximate annual market value is:
A new technology makes an established manufacturing process significantly cheaper and enables new competitors to enter. In a PESTLE analysis, the initial external change is primarily classified under:
In the BCG growth-share matrix, a business with high relative market share in a high-growth market is conventionally classified as a:
Which statement best captures the logic of the Structure-Conduct-Performance (SCP) framework used in industry analysis?
For an airline, passenger load factor most directly measures:
Over several years, consumers shift spending from physical media to subscription streaming platforms, and the industry's profit pool gradually moves toward the streaming ecosystem. This is best described as:
An analyst covers a sector in which tariffs, licences and permitted returns are set or heavily influenced by regulation. What is the most appropriate approach?

Zaroori ideas

Practice bank se · 1

An industry once required heavy distribution infrastructure, but digital channels have sharply lowered setup costs and customer access barriers. Other things equal, which Porter force has become more threatening to incumbent profitability?

Lower entry barriers make it easier for new competitors to enter, increasing the threat of new entrants and potentially reducing incumbent profitability. Remember: Identify the economic fact in the scenario and map it to the relevant competitive force.

Hint Common mistake: Memorising the five labels without recognising how real-world changes affect them.

XV-018

Practice bank se · 2

An industry that previously grew rapidly now faces slowing demand growth, excess capacity and intense price competition. Weaker firms are exiting or being acquired. Which stage best fits this description?

The shakeout stage commonly follows rapid growth. Demand growth slows, competition intensifies, excess capacity becomes visible and weaker participants exit or consolidate. Remember: Industry life-cycle analysis connects demand growth, capacity, competition and consolidation.

Hint Common mistake: Calling every consolidating industry 'mature' without examining whether the shakeout process is still underway.

XV-029

Practice bank se · 3

A manufacturer depends on a specialised input supplied by only one qualified vendor. There is no close substitute, switching would require costly redesign, and the input is critical to production. Which competitive force is strongest in this fact pattern?

Supplier bargaining power is high when suppliers are concentrated, the input is critical, substitutes are limited and switching costs are high. Remember: Assess competitive power from concentration, substitutability, switching costs and importance of the input.

Hint Common mistake: Focusing only on the number of suppliers and ignoring switching costs and substitutes.

XV-030

Practice bank se · 4

When forecasting a regulated electricity distribution utility, which factor is likely to be especially important to sustainable earnings?

For a regulated utility, earnings often depend heavily on the tariff-setting framework, allowed returns, approved costs and the regulated/recognised asset base. These are industry-specific drivers. Remember: Industry analysis should focus on the KPIs and regulatory/economic variables that actually drive earnings.

Hint Common mistake: Applying generic consumer-business drivers to heavily regulated industries.

XV-031

Practice bank se · 5

Compared with a consumer-staples producer, a commercial-vehicle manufacturer will generally be expected to have:

Commercial-vehicle demand is typically more cyclical because fleet replacement, freight economics, financing availability and business investment respond to economic conditions. Consumer staples are generally less cyclical. Remember: Industry cyclicality determines how strongly revenue and margins respond to the economic cycle.

Hint Common mistake: Comparing sectors only on product familiarity rather than on demand drivers and operating leverage.

XV-032

Practice bank se · 6

An industry sells 5 million units annually at an average realised price of ₹2,400 per unit. Ignoring taxes and channel inventory changes, the approximate annual market value is:

Market value ≈ Volume × Average realised price = 5,000,000 × ₹2,400 = ₹12,000,000,000, which is ₹1,200 crore. Remember: Market sizing often starts with units × realised price, but unit conversions must be checked carefully.

Hint Common mistake: Getting the commercial logic right but making a crore/billion conversion error.

XV-076

Practice bank se · 7

A new technology makes an established manufacturing process significantly cheaper and enables new competitors to enter. In a PESTLE analysis, the initial external change is primarily classified under:

PESTLE categorises broad external forces. A new production technology is primarily a technological factor, even though it may later create economic and competitive consequences. Remember: PESTLE classifies the source of an external force. Downstream effects can span several categories.

Hint Common mistake: Classifying the consequence instead of the originating external factor.

XV-077

Practice bank se · 8

In the BCG growth-share matrix, a business with high relative market share in a high-growth market is conventionally classified as a:

In the conventional BCG matrix, a 'Star' combines high relative market share with high market growth. Remember: The BCG matrix combines relative market share with market growth.

Hint Common mistake: Remembering only the labels without linking them to the two matrix dimensions.

XV-105

Practice bank se · 9

Which statement best captures the logic of the Structure-Conduct-Performance (SCP) framework used in industry analysis?

The SCP framework studies how structural features such as concentration and entry barriers may influence competitive conduct and, ultimately, outcomes such as pricing, profitability and efficiency. Remember: SCP links market structure to competitive behaviour and economic outcomes.

Hint Common mistake: Confusing SCP with a company-level accounting or technical-analysis framework.

XV-106

Practice bank se · 10

For an airline, passenger load factor most directly measures:

Passenger load factor is a capacity-utilisation KPI: passenger traffic relative to available seat capacity. Remember: Industry KPIs should be interpreted in terms of the operating activity they measure.

Hint Common mistake: Using a generic financial ratio when the question asks for an industry-specific operating KPI.

XV-107

Practice bank se · 11

Over several years, consumers shift spending from physical media to subscription streaming platforms, and the industry's profit pool gradually moves toward the streaming ecosystem. This is best described as:

Value migration occurs when economic value and profit pools shift from one business model, product or part of an industry to another as customer preferences, technology or economics change. Remember: Value migration is a structural shift in where an industry creates and captures economic value.

Hint Common mistake: Calling a long-term structural shift merely a short-term cycle.

XV-108

Practice bank se · 12

An analyst covers a sector in which tariffs, licences and permitted returns are set or heavily influenced by regulation. What is the most appropriate approach?

In regulated sectors, changes in tariffs, licences, permitted returns, compliance requirements or market structure can materially affect cash flows and competitive dynamics. Remember: Regulation can be an industry driver, not merely a compliance footnote.

Hint Common mistake: Treating a regulated sector as if its economics were determined only by market demand.

XV-109

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Agla concept dhoondhein

Industry Analysis

Is unit mein kya hai

Zaroori ideas

An industry once required heavy distribution infrastructure, but digital channels have sharply lowered setup costs and customer access barriers. Other things equal, which Porter force has become more threatening to incumbent profitability?

An industry that previously grew rapidly now faces slowing demand growth, excess capacity and intense price competition. Weaker firms are exiting or being acquired. Which stage best fits this description?

A manufacturer depends on a specialised input supplied by only one qualified vendor. There is no close substitute, switching would require costly redesign, and the input is critical to production. Which competitive force is strongest in this fact pattern?

When forecasting a regulated electricity distribution utility, which factor is likely to be especially important to sustainable earnings?

Compared with a consumer-staples producer, a commercial-vehicle manufacturer will generally be expected to have:

An industry sells 5 million units annually at an average realised price of ₹2,400 per unit. Ignoring taxes and channel inventory changes, the approximate annual market value is:

A new technology makes an established manufacturing process significantly cheaper and enables new competitors to enter. In a PESTLE analysis, the initial external change is primarily classified under:

In the BCG growth-share matrix, a business with high relative market share in a high-growth market is conventionally classified as a:

Which statement best captures the logic of the Structure-Conduct-Performance (SCP) framework used in industry analysis?

For an airline, passenger load factor most directly measures:

Over several years, consumers shift spending from physical media to subscription streaming platforms, and the industry's profit pool gradually moves toward the streaming ecosystem. This is best described as:

An analyst covers a sector in which tariffs, licences and permitted returns are set or heavily influenced by regulation. What is the most appropriate approach?