Question

The Week 7 Case Study Assignment is an individual assignment that requires you to analyze a select group of alternative industries to determine which is most likely to perform best over the next 12 months. Factors to consider when comparing the industry groups include how the current and prospective economic conditions over the next year will affect them and the current and prospective domestic and global supply and demand conditions in their markets.

Review briefly the list of industries below and pick two major groups to analyze. Submit your choice of industries as your Week 7 Case Study Assignment.

• Basic Materials:
  • Aluminum
  • Major Integrated Oil &Gas
  • Nonmetallic Mineral Mining
• Consumer Goods:
  • Appliances
  • Confectioners
  • Office Supplies
• Financial:
  • REIT-Healthcare Facilities
  • REIT-Hotel/Motel
  • REIT-Industrial
• Healthcare:
  • Drugs-Generic
  • Home Health Care
  • Hospitals
• Industrial Goods:
  • Manufactured Housing
  • Pollution & Treatment Controls
• Services:
  • Advertising Agencies
  • Air Delivery & Freight Services
  • Drug Stores
  • Electronic Stores
  • Home Improvement Stores
  • Jewelry Stores
• Technology:
  • Computer Based Systems
  • Long Distance Carriers
  • Personal Computers
• Utilities:
  • Water Utilities

Answer 1

The global world is encountering serious troubles due to the pandemic outbreak of COVID-19. The majority of countries in the world are witnessing either a complete or partial lockdown. There are restrictions for travel and transportations worldwide. Its ramifications may last for the next couple of months. It is the major event that is going to affect the whole business scenario. In this context, I would like to choose two industries namely Healthcare and Technology for analysis which I believe would perform better during the next 12 months compared to other alternative industries given in the question.

Healthcare Industry

Healthcare Industry is the major industry that might boom in the next 12 months as the majority of governments are spending a huge amount on healthcare compared to the already budgeted amount. Some countries allocated more than 10 times the amount already allocated to the healthcare sector. There will be more demand for generic drugs worldwide. The companies that manufacture quality generic medicines could reap greater benefits on account of the surge in demand. The next segment in the industry is Home Health Care as it is proved to be the best way to treat the elderly during a pandemic situation. This segment could witness more demand than the actual supply. When it comes to hospitals, there will be more demand for telemedicine. Even if the economic conditions are bad governments across the globe are forced to spend on healthcare that is going to be a boon for the industry.

Technology Industry

Another industry that may flourish during the next 12 months would be the Technology industry as there is a high demand for computer-based systems, long-distance carriers, and personal computers, etc. Travel restrictions may create more demand in this industry. For the next 12 months, people may depend more on digital technology for their daily operations. Companies are also switching towards technological platforms for reducing costs in anticipation of a potential economic recession. Computer-based systems, long-distance carriers, and personal computers, etc would have more demand due to the increased demand from the part of companies to integrate their businesses using technological tools, and also the trend towards Work From Home is also favorable to the industry. Increased demand from another flourishing industry that is healthcare especially for facilitating telemedicine is also advantageous to the technological industry.