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Consumer Electronics Stores in the US September 2012

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IBISWorld Industry Report 44311

Consumer Electronics
Stores in the US
September 2012

Justin Waterman

About this Industry

17 International Trade

Industry Definition

18 Business Locations

Main Activities

Similar Industries

20 Competitive Landscape

33 Industry Data

Additional Resources

20 Market Share Concentration

33 Annual Change

20 Key Success Factors

33 Key Ratios

Industry at a Glance

Industry Performance

23 Barriers to Entry

Executive Summary

24 Industry Globalization

Key External Drivers

Current Performance

25 Major Companies

Industry Outlook

25 Best Buy Co. Inc.

32 Industry Assistance

33 Key Statistics

20 Cost Structure Benchmarks

22 Basis of Competition

11 Industry Life Cycle

27 RadioShack Corporation

13 Products & Markets

29 Operating Conditions

13 Supply Chain

29 Capital Intensity

13 Products & Services

30 Technology & Systems

15 Demand Determinants

30 Revenue Volatility

16 Major Markets

31 Regulation & Policy

34 Jargon & Glossary

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

About this Industry

Industry Definition

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Main Activities

The primary activities of this industry are

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Retailing new household appliances (e.g. refrigerators, washing machines and ovens)
Retailing new personal appliances (e.g. hair dryers, curling irons and electric razors)
Retailing computers alongside other household and personal appliances
Offering repair services in conjunction with retail operations

The major products and services in this industry are

Audio equipment
Computer hardware and software
Home and office equipment
Major appliances
Small electric appliances
TV and video equipment
Other

Similar Industries

44312 Computer Stores in the US

Operators in this industry retail new computer peripherals and prepackaged computer software in addition
to office equipment and supplies.
44313 Camera Stores in the US
Operators in this industry sell new cameras and photographic equipment and supplies, often in conjunction
with repair services and film developing.
45112 Hobby & Toy Stores in the US
Operators in this industry retail new toys, games and hobby and craft supplies (except needlecraft).
45321 Office Supply Stores in the US
Operators in this industry retail new stationery, school supplies and office supplies in conjunction with new
office equipment, furniture and supplies.
45331 Used Goods Stores in the US
Operators in this industry retail a wide assortment of used goods, including used consumer electronics.
81121 Electronic & Computer Repair Services in the US
Services in this industry include repairing and maintaining consumer electronic equipment, computers and
office equipment, and other electronic equipment.

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

About this Industry

Similar Industries
continued

81141 Appliance Repair in the US

Services in this industry include repairing and servicing home and garden equipment and household
appliances.
45411a E-Commerce & Online Auctions in the US
Operators in this industry retail consumer electronics via the internet.
45411b Mail Order in the US
Operators in this industry retail consumer electronics via catalogs or mail order forms.

Additional Resources

For additional information on this industry

www.appliancemagazine.com
ApplianceMagazine.com
www.ce.org
Consumer Electronic Association
www.census.gov
US Census Bureau

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

Industry at a Glance
Consumer Electronics Stores in 2012

Key Statistics
Snapshot

Revenue

Annual Growth 07-12

Annual Growth 12-17

Profit

Wages

Businesses

$80.9bn -2.6%
$2.2bn

$9.0bn

Per capita disposable income

Revenue vs. employment growth

Market Share

3.0%
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Employment
SOURCE: WWW.IBISWORLD.COM

p. 25

Products and services segmentation (2012)

9.9%

Key External Drivers

1.5%

Home and office Other

equipment

Per capita disposable

income
Consumer
sentiment index

0.4%

Small electric
appliances

31%

10.2%

TV and video
equipment

Audio equipment

External competition
Number of households

18%

Computer hardware
and software

29%

p. 5

Industry Structure

Major appliances

Life Cycle Stage

Revenue Volatility

Mature
Medium

Regulation Level
Technology Change

Capital Intensity

Low

Barriers to Entry

Industry Assistance

Low

Industry Globalization

Concentration Level

Medium

FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 33

Competition Level

SOURCE:
WWW.IBISWORLD.COM
SOURCE:
WWW.IBISWORLD.COM

Light
Low
Medium
Low
Medium

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

Industry Performance

Executive Summary | Key External Drivers | Current Performance

Industry Outlook | Life Cycle Stage
Executive
Summary

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Key External Drivers

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

Industry Performance

Key External Drivers

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Consumer sentiment index

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SOURCE: WWW.IBISWORLD.COM

Current
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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

Industry Performance

Electronics versus
home appliances

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SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

Industry Performance

Electronics versus
home appliances
continued

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

Industry Performance

External competition
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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

10

Industry Performance

Future trends
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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

11

Industry Performance
Life Cycle Stage

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10

Hobby & Toy Stores

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SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

12

Industry Performance

Industry Life Cycle

This industry
is Mature

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

13

Products & Markets

Supply Chain | Products & Services | Demand Determinants

Major Markets | International Trade | Business Locations

Supply Chain

KEY BUYING INDUSTRIES

99

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Products & Services

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TV & Appliance Wholesaling in the US

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Electronic Part & Equipment Wholesaling in the US

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Auto Leasing, Loans & Sales Financing in the US

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

14

Products & Markets

Products & Services

continued

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

15

Products & Markets

Products & Services

continued

Demand
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Home and office equipment

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

16

Products & Markets

Demand
Determinants
continued
Major Markets

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Major market segmentation (2012)

11.5%

Consumers aged
65 and older

13.2%

39.5%

Consumers aged
24 and younger

Consumers aged
35 to 54

17.3%

Consumers aged
25 to 34

Total $80.9bn

18.5%

Consumers aged
55 to 64

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SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

17

Products & Markets

Major Markets
continued

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Consumers aged 65 and over

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

18

Products & Markets

Business Locations 2012

West
New
England

AK
0.2

Great
Lakes
WA

ND

MT

1.9

Rocky
Mountains
ID

OR
1.3

West NV
0.8

1.8

SD
0.4

WY

0.7

MN

0.3

0.5

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CO

1.1

2.2

1.1

3.4

KY

11.6

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1.3

AZ

NM

1.9

0.6

Southwest
TX
7.6

HI
0.3

Additional States (as marked on map)

1 VT

2 NH

3 MA

4 RI

5 CT

6 NJ

7 DE

8 MD

0.2
1.1

0.5

3.0

2.0

0.3

NC
2.8

SC

Southeast
MS

AL
1.4

1.3

GA
3.0

0.8

LA
1.3

FL
6.6

No. of establishments (%)

0.3

1.7

1.0

0.5

TN

AR

WV VA
2.5

1.8

CA

West

OH

1.2

MO

KS

1.9

2.2

4.5

3.8

IN

IL

0.5

UT

PA

3.7

1.3

0.5

1 2
3
NY
7.0
5 4

MI

2.0

IA

NE

0.3

WI

ME

MidAtlantic

9 DC
0.1

Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

19

Products & Markets

Establishments vs. population

30

20

10

Southwest

Southeast

Rocky Mountains

Plains

New England

Mid-Atlantic

Great Lakes

0
West

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Business Locations

Establishments
Population
SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

20

Competitive Landscape

Market Share Concentration | Key Success Factors | Cost Structure Benchmarks

Basis of Competition | Barriers to Entry | Industry Globalization
Market Share
Concentration
Level

Concentration in this
industry is Medium

Key Success Factors

IBISWorld identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:

Cost Structure
Benchmarks

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Having a wide and expanding

product range
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Proximity to key markets

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LQKLJKWUDIFDUHDV6WRUHVVKRXOGEH
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Attractive product presentation

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Ability to control stock on hand

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Profit
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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

21

Competitive Landscape

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Purchases
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Sector vs. Industry Costs

Average Costs of
all Industries in
sector (2012)

Industry Costs
(2012)

3.5
9.5

2.7
11.1

72.0

70.0

100

80

Percentage of revenue

Cost Structure
Benchmarks
continued

60

Q Profit
Q Wages
Q Purchases
Q Depreciation
Q Marketing
Q Rent & Utilities
Q Other

40

20

1.5

3.4
7.1

3.0

0.8

3.9 1.6
9.9
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

22

Competitive Landscape

Cost Structure
Benchmarks
continued

Basis of Competition
Level & Trend

Competition in
this industry is
Medium and the
trend is Steady

Depreciation
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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

23

Competitive Landscape

Basis of Competition
continued

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Barriers to Entry
Level & Trend

Barriers to Entry
in this industry are
Medium and Steady

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Competition
Concentration
Life Cycle Stage
Capital Intensity
Technology Change
Regulation & Policy
Industry Assistance

Level
Medium
Medium
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Low
Low
Light
Low
SOURCE: WWW.IBISWORLD.COM

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

24

Competitive Landscape

Barriers to Entry
continued

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

25

Major Companies

Best Buy Co. Inc. | RadioShack Corporation | Other Companies

Major players
(Market share)

RadioShack Corporation 5.6%

46.5%
Other

Best Buy Co. Inc. 47.9%

Player Performance
Best Buy Co. Inc.
Market share: 47.9%

SOURCE: WWW.IBISWORLD.COM

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Best Buy Co. Inc. (domestic segment) financial performance

Revenue
($ million)

(% change)

Operating Income
($ million)

(% change)

2007-08

33,328

7.4

1,999

5.2

2008-09

35,070

5.2

1,758

-12.1

2009-10

37,138

5.9

2,103

19.6

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37,070

-0.2

2,054

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2011-12

37,615

1.5

1,855

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2012-13**

38,721

2.9

1,786

-3.7

Year*

*Year-end February; **Estimate

SOURCE: ANNUAL REPORT AND IBISWORLD

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

26

Major Companies

Player Performance
continued

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Best Buy Co. Inc. financial performance

Revenue
($ million)

(% change)

Operating Income
($ million)

(% change)

2007-08

39,892

11.4

2,185

2.2

2008-09

44,737

12.1

2,014

-7.8

2009-10

49,243

10.1

2,368

17.6

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49,747

1.0

2,374

0.3

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50,705

1.9

1,085

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50,523

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983

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Year*

*Year-end February; **Estimate

SOURCE: ANNUAL REPORT AND IBISWORLD

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

27

Major Companies

Player Performance
RadioShack
Corporation
Market share: 5.6%

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RadioShack Corporation financial performance

Year

Revenue
($ million)

(% change)

Net Income
($ million)

(% change)

2007

4,075.4

-11.0

236.8

222.6

2008

4,034.8

-1.0

189.4

-20.0

2009

4,073.6

1.0

205.2

8.3

2010

4,265.8

4.7

206.1

0.4

2011

4,378.0

2.6

72.2

-65.0

2012*

4,523.4

3.3

70.0

-3.0

*Estimate

SOURCE: ANNUAL REPORT

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

28

Major Companies

Player Performance
continued

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Exited in 2009
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WWW.IBISWORLD.COM

29

Consumer Electronics Stores in the US September 2012

Operating Conditions

Capital Intensity | Technology & Systems | Revenue Volatility

Regulation & Policy | Industry Assistance
Capital Intensity
Level

The level of capital

intensity is Low

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Capital intensity

Capital units per labor unit

0.5
0.4
0.3
0.2
0.1
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Economy

Retail Trade

Consumer
Electronics
Stores

Dotted line shows a high level of capital intensity

SOURCE: WWW.IBISWORLD.COM

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Tools of the Trade: Growth Strategies for Success

Investment Economy

Recreation, Personal Services,

Health and Education. Firms
benefit from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.

Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.

Computer Stores

Traditional Service Economy

Wholesale and Retail. Reliant

on labor rather than capital to
sell goods. Functions cannot
be outsourced therefore firms
must use new technology
or improve staff training to
increase revenue growth.

Capital Intensive

Labor Intensive

New Age Economy

Consumer
Electronics
Stores

Hobby & Toy Stores

TV & Appliance Wholesaling

Electronic Part &

Equipment Wholesaling
Camera Stores

Change in Share of the Economy

Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

30

Operating Conditions

Capital Intensity
continued

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& Systems

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The level of
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The level of
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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

31

Operating Conditions

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A higher level of revenue
volatility implies greater
industry risk. Volatility can
negatively affect long-term
strategic decisions, such as
the time frame for capital
investment.
When a firm makes poor
investment decisions it
may face underutilized
capacity if demand
suddenly falls, or capacity
constraints if it rises
quickly.

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Volatility vs Growth
1000

Revenue volatility* (%)

Revenue Volatility
continued

Hazardous

Rollercoaster

100
10

Consumer Electronics
Stores

1
0.1

Stagnant
30

10

Blue Chip
10

30

50

70

Five year annualized revenue growth (%)

* Axis is in logarithmic scale
SOURCE: WWW.IBISWORLD.COM

Regulation & Policy

Level & Trend

The level of
Regulation is
Light and the
trend is Steady

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

32

Operating Conditions

Industry Assistance
Level & Trend

The level of
Industry Assistance
is Low and the
trend is Steady

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WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

33

Key Statistics
Industry Data
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Sector Rank
Economy Rank

Revenue
($m)
79,957.5
84,869.9
89,085.0
92,724.8
92,157.9
87,454.6
79,260.5
78,330.1
78,956.8
80,851.7
83,448.7
86,914.3
90,109.3
92,174.3
93,720.1
13/63
105/706

Annual Change
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Sector Rank
Economy Rank

Revenue
(%)
6.1
5.0
4.1
-0.6
-5.1
-9.4
-1.2
0.8
2.4
3.2
4.2
3.7
2.3
1.7
27/63
360/706

Industry
Value Added
($m)
12,288.1
12,683.8
13,662.4
14,198.2
12,816.3
11,321.2
10,791.1
11,211.3
11,563.3
11,791.4
12,201.9
12,554.3
12,884.4
13,174.9
13,344.5
13/63
205/706

Establishments
52,033
52,970
53,920
53,208
57,934
55,434
51,693
50,886
50,899
51,191
51,801
52,215
52,540
52,775
53,023
16/63
114/705

Enterprises Employment
39,734
341,164
40,448
374,238
40,671
379,448
39,844
395,646
43,208
407,783
41,927
402,053
39,124
387,090
38,777
385,824
39,008
389,257
39,354
392,768
39,916
397,891
40,259
400,700
40,539
402,735
40,754
403,984
40,984
405,245
15/63
11/63
122/705
88/706

Exports
---------------N/A
N/A

Industry
Value Added
(%)
3.2
7.7
3.9
-9.7
-11.7
-4.7
3.9
3.1
2.0
3.5
2.9
2.6
2.3
1.3
38/63
430/706

Establishments
(%)
1.8
1.8
-1.3
8.9
-4.3
-6.7
-1.6
0.0
0.6
1.2
0.8
0.6
0.4
0.5
34/63
404/705

Enterprises Employment
(%)
(%)
1.8
9.7
0.6
1.4
-2.0
4.3
8.4
3.1
-3.0
-1.4
-6.7
-3.7
-0.9
-0.3
0.6
0.9
0.9
0.9
1.4
1.3
0.9
0.7
0.7
0.5
0.5
0.3
0.6
0.3
27/63
39/63
315/705
387/706

Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Key Ratios
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Sector Rank
Economy Rank

IVA/Revenue
(%)
15.37
14.94
15.34
15.31
13.91
12.95
13.61
14.31
14.65
14.58
14.62
14.44
14.30
14.29
14.24
50/63
636/706

Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Exports/Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Figures are inflation-adjusted 2012 dollars. Rank refers to 2012 data.

Revenue per
Employee
($000)
234.37
226.78
234.78
234.36
226.00
217.52
204.76
203.02
202.84
205.85
209.73
216.91
223.74
228.16
231.27
27/63
391/706

Imports
---------------N/A
N/A

Wages
($m)
9,571.1
9,752.4
10,440.1
10,714.6
9,242.6
9,083.3
8,648.8
8,680.6
8,878.7
8,992.0
9,245.5
9,412.6
9,573.1
9,736.1
9,802.2
11/63
164/706

Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Per Capita Disposable Income

($)
30,429
31,184
31,318
32,277
32,713
33,197
32,143
32,446
32,595
32,856
33,250
33,782
34,457
35,078
35,884
N/A
N/A

Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Wages
(%)
1.9
7.1
2.6
-13.7
-1.7
-4.8
0.4
2.3
1.3
2.8
1.8
1.7
1.7
0.7
37/63
420/706

Domestic
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

Per Capita Disposable Income

(%)
2.5
0.4
3.1
1.4
1.5
-3.2
0.9
0.5
0.8
1.2
1.6
2.0
1.8
2.3
N/A
N/A

Wages/Revenue
(%)
11.97
11.49
11.72
11.56
10.03
10.39
10.91
11.08
11.25
11.12
11.08
10.83
10.62
10.56
10.46
44/63
508/706

Employees
per Est.
6.56
7.07
7.04
7.44
7.04
7.25
7.49
7.58
7.65
7.67
7.68
7.67
7.67
7.65
7.64
19/63
452/705

Average Wage
($)
28,054.25
26,059.35
27,513.91
27,081.28
22,665.49
22,592.30
22,343.12
22,498.86
22,809.35
22,893.92
23,236.26
23,490.39
23,770.22
24,100.21
24,188.33
33/63
599/706

Share of the
Economy
(%)
0.10
0.10
0.11
0.11
0.10
0.09
0.08
0.09
0.09
0.09
0.09
0.09
0.09
0.09
N/A
13/63
205/706

SOURCE: WWW.IBISWORLD.COM

WWW.IBISWORLD.COM

Consumer Electronics Stores in the US September 2012

34

Jargon & Glossary

Industry Jargon

BIG-BOX STORE A retail store that is differentiated by

its sheer size and large range of products, including
electronics, household goods and other consumer
products.
BLU-RAY An optical disc format designed to display
high-definition video and store large amounts of data.
BRICK-AND-MORTAR A store that has a physical
presence and location, as opposed to an online retailer.
COMPARABLE-STORE SALES A retail measure used to
assess the true performance of retail outlets by taking
out the effect of new store openings and only looking at
sales growth of existing stores.

IBISWorld Glossary

BARRIERS TO ENTRY Barriers to entry can be High,

Medium or Low. High means new companies struggle to
enter an industry, while Low means it is easy for a firm
to enter an industry.
CAPITAL/LABOR INTENSITY An indicator of how much
capital is used in production as opposed to labor. Level is
stated as High, Medium or Low. High is a ratio of less
than $3 of wage costs for every $1 of depreciation;
Medium is $3 $8 of wage costs to $1 of depreciation;
Low is greater than $8 of wage costs for every $1 of
depreciation.
CONSTANT PRICES The dollar figures in the Key
Statistics table, including forecasts, are adjusted for
inflation using 2011 as the base year. This removes the
impact of changes in the purchasing power of the dollar,
leaving only the real growth or decline in industry
metrics. The inflation adjustments in IBISWorlds
reports are made using the US Bureau of Economic
Analysis implicit GDP price deflator.
DOMESTIC DEMAND The use of goods and services
within the US; the sum of imports and domestic
production minus exports.
EARNINGS BEFORE INTEREST AND TAX (EBIT)
IBISWorld uses EBIT as an indicator of a companys
profitability. It is calculated as revenue minus expenses,
excluding tax and interest.
EMPLOYMENT The number of working proprietors,
partners, permanent, part-time, temporary and casual
employees, and managerial and executive employees.
ENTERPRISE A division that is separately managed and
keeps management accounts. The most relevant
measure of the number of firms in an industry.
ESTABLISHMENT The smallest type of accounting unit
within an Enterprise; usually consists of one or more
locations in a state or territory of the country in which it
operates.
EXPORTS The total sales and transfers of goods
produced by an industry that are exported.
IMPORTS The value of goods and services imported
with the amount payable to non-residents.

POINT OF SALE (POS) A system used at checkout in

retail stores using computers and cash registers to
capture transaction data at the time and place of sale.
RADIO FREQUENCY IDENTIFICATION (RFID) A
technology that tracks products from the time they
leave the assembly line to the time they leave the store
by releasing continuous signals from a chip.
SMARTPHONE A mobile phone that offers advanced
PC-like capabilities.
WHITE GOODS Large electrical goods used
domestically, such as refrigerators and washing
machines, typically white in color.

INDUSTRY CONCENTRATION IBISWorld bases

concentration on the top four firms. Concentration is
identified as High, Medium or Low. High means the top
four players account for over 70% of revenue; Medium
is 40 70% of revenue; Low is less than 40%.
INDUSTRY REVENUE The total sales revenue of the
industry, including sales (exclusive of excise and sales
tax) of goods and services; plus transfers to other firms
of the same business; plus subsidies on production; plus
all other operating income from outside the firm (such
as commission income, repair and service income, and
rent, leasing and hiring income); plus capital work done
by rental or lease. Receipts from interest royalties,
dividends and the sale of fixed tangible assets are
excluded.
INDUSTRY VALUE ADDED The market value of goods
and services produced by an industry minus the cost of
goods and services used in the production process,
which leaves the gross product of the industry (also
called its Value Added).
INTERNATIONAL TRADE The level is determined by:
Exports/Revenue: Low is 0 5%; Medium is 5 20%;
High is over 20%. Imports/Domestic Demand: Low is
0 5%; Medium is 5 35%; and High is over 35%.
LIFE CYCLE All industries go through periods of Growth,
Maturity and Decline. An average life cycle lasts 70
years. Maturity is the longest stage at 40 years with
Growth and Decline at 15 years each.
NON-EMPLOYING ESTABLISHMENT Businesses with
no paid employment and payroll are known as
non-employing establishments. These are mostly set-up
by self employed individuals.
VOLATILITY The level of volatility is determined by the
percentage change in revenue over the past five years.
Volatility levels: Very High is greater than 20%; High
Volatility is between 10% and 20%; Moderate
Volatility is between 3% and 10%; and Low Volatility
is less than 3%.
WAGES The gross total wages and salaries of all
employees of the establishment.

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