The world is full of various businesses.

From the conglomerate that assembled the paper or ink

this paper is printed on, to the taco truck distributing dinner to pedestrians, they all fall under the label
of one industry or another, each industry having some kind of identification number in the NAICS. This
system allows individuals outside the industry to look at statistics and facts pertinent to the industry.
Using this system, one can analyze industries in comparison to others to determine relative information
such as the longevity or profitability of a particular industry. For this analysis, the pharmaceutical
wholesaler industry will be compared to the frozen food manufacturers as well as law firms. They have
some immediate similarities such as all engaging in some kind of market research. They are all
businesses that interact with other businesses in the sense that they all have some other industry as a
supplier. All three have revenue in the billions. That being said, there is much to say for each of these
industries, they all have strengths and weaknesses, threats, and potential opportunities, all of which is
worth an in depth analysis.
The first industry under examination is law firms, which is described as offices of legal
practitioners, known as lawyers or attorneys, who primarily practice law. They offer expertise on a
range of areas of law including tax, divorce, real estate, and crime. Commercial law services constitute
the largest area of focus at a staggering 43.6%. With a little less than half of the field specializing in
business, it is no surprise that the revenue and employment of this industry seems to be directly
correlated with corporate profit. In this sense, corporate profit refers to the corporate profit earned
across all industries, and when it is relatively high, there are more initial public offerings, mergers, and
acquisitions which all require some legal consultation. Conversely, when corporate profit is relatively
lower due to a shift in the overall economy, the law firms industry can somewhat mitigate their losses.
Initially, there is the legal consultation required for liquidating assets of companies unable to survive
the fluctuations of the market. This is not a sustainable customer. However, companies that require this
legal help only need assistance once. Additionally, these are companies who have a hard time paying
bills, so they probably do not have additional funding for extra legal services. Therefore, this industry

is not as lucrative as when corporate profit is high. Another aspect of the industry is that it is considered
to have a low barrier to entry. This is because a law firm can consist of a full service legal office or a
sole practitioner. This low entry barrier is related to another pertinent factor to this industry: the market
saturation, which is considered to be mature (IBIS). The need for outside legal services slowly
decreases as companies hire lawyers internally, the crime rate decreases, and alternative methods for
legal help arise. To accommodate, business owners who wish to avoid retaining a legal team simply
hire one internally. There has also been an increase in non-hourly billing practices, as well as software
equipped with templates formatted for business contracts. Additionally, in 2012, Washington adopted
the Licensed Legal Technician Rule which authorizes non-attorneys who have certain educational
requirements to assist and advise clients in approved practices of the law. Other states have considered
a pilot program similar to Washington's L.L.R.T., because it allows legal aid to people who typically
would not have access to legal services. However, despite all of these constraints, there is still work for
currently practicing attorneys. Law has an inherent fixation on location; laws change from place to
place. Additionally, requirements for people to practice law in a particular region change with location.
Most large firms have had some kind of relationship with local industry, such as Texas firms
specializing in gas and oil related work, or firms in New York reflecting the finance based work of Wall
Street (Local Matters). Also, despite any technological breakthrough, one cannot replace a lawyer in
courtroom. Because of this, successful firms that are looking to expand prefer to merge with existing
firms in other places, picking up clientele, as well, in the process (Institutional Bridging). This plan
requires less downtime to be profitable compared to hiring new attorneys, obtaining and setting up an
office, and competing for work to earn recognition that will warrant additional demand for the firm.
Two of the keys for success in this industry are having an experienced workforce as well as having a
strong reputation. Mergers and acquisitions accommodate both of those principles. Although the
profession has obstacles looming above individual firms, the industry overall will be around for the
foreseeable future.

Another notable industry is that of the drug, cosmetic, and toiletry wholesaling industry. It is defined as
a distributor of pharmaceuticals intended for consumption. This includes tablets, capsules, ointments,
powders, and vials (IBIS). The main products sold by this industry are brand name prescription pills at
49%, generic brand prescription pills at 18%, followed by cosmetics at 12%. Clearly the focus in this
industry is on prescription pills, specifically, brand name prescription pills. This emphasis may be due
to patents prohibiting other firms to compete, therefore protecting the companies cash cows for
multiple years. The three major players in the drug, cosmetic, and toiletry wholesaling industry are
MeKesson Corporation with 16.1% of the market share, Amerisource Bergen Corporation with 15.6%,
and Cardinal Health Inc with 11.5%. It is considered a growth industry with a high barrier to entry,
which is beneficial for those three firms. They can grow, and for the most part, only worry about the
other two as competition. That being said, the competition between them remains high. Walgreen's
switched from Cardinal to Amerisource Bergen with its 10 year, $22 billion contract, which has
impacted both companies significantly. With this industry being a wholesaler, there is serious focus on
keeping costs down. Therefore, it is no surprise that the external factors include the price of electricity
as well as crude oil. Moving inventory using trucks is a common task for wholesalers, therefore when
the price of gas goes up, the cost of that moving products goes up as well. Another serious
consideration for an industry intent on minimizing costs is the price of electricity. Certain drugs sold
within this industry need to be kept at a certain temperature, typically all day, every day. Maintaining
that ideal temperature, as well as the integrity of the medicine comes at a cost, which is directly tied to
the price of electricity. Another key element of this industry is the brand name to the ultimate
consumer. Although the wholesaler's customers are other firms who will resell the products, it is
important to keep the needs of the people actually using the products in mind, because regardless of the
discount one gives them, the vendors will not buy a product they cannot sell. Focusing on the cosmetic
end of this industry, it seems as though there would be no brand loyalty due to the vast array of choices,
some claiming to do the same as others, but cheaper. Price does factor into the buying decision, but

consumers believe they are more knowledgeable about the effectiveness of individual products which
makes them more interested in getting a product of value for their money as opposed to just buying the
cheapest offering (valueline.com). For a product to succeed in swaying a potential buyer it first needs
to have some kind of product development that offers something useful to the customer, for example a
deodorant that does not leave a white mark, or one that does not have a scent which bothers some
people with sensitive skin. Second, the marketing for said product needs to convey this utility to the
potential consumer. If the company is successful in those two endeavors, then people will be willing to
pay. This does not bode well for a smaller firm who may not have the resources to compete with the
advertising campaign that McKesson could maintain.
There is plenty of good news, as well as opportunities for this industry. Initially, this industry is
recession-proof in the sense that people will still need medication and basic toiletries even when
times are lean. This attribute makes the industry attractive for investors during down years. An obvious
opportunity for this industry is to establish a foothold in emerging markets. Parts of the world that have
people with more disposable income is good, but regions that place an emphasis on personal
appearance are even better. One should place a useful product in the market place, convey the utility of
the product to the local populace, and keep costs down by creating and maintaining alliances with
manufacturers and vendors. A more creative business plan tries to invent new distribution channels,
such as placing a high tech vending machine in an airport, capable of selling deodorant, toothpaste,
shaving equipment or other items needed for travel that are commonly forgotten or would be
confiscated by airport security. Finally, a green strategy can be implemented, as well. Items that have
low environmental impact packaging are a selling point for some demographics. If one can market the
product to be high tech, but also allowing the consumer to maintain a green mentality, then there is
marketing potential in that product. Considering all of the facets of the drug, cosmetic, and toiletry
wholesaling industry, anyone in this industry is certainly in a position to be a success.
The final industry being analyzed is frozen food production, which produces frozen packaged foods,

including frozen fruits, vegetables, juices, frozen pizza, packaged meals, breakfast foods and side
dishes (IBIS). These are sold to wholesalers, retail grocery stores, and the hospitality industry. Frozen
prepared entrees and frozen vegetables are the main products at 33.2% and 31.3%, respectively. The
next largest type of product is not as broad of a category as frozen entrees or frozen vegetables, but at
10%, frozen pizza is a product worth consideration. The leaders in this industry are Nestle SA at 15.5%
of the market share, ConAgra Foods Inc at 13.4%, and the Schwan Food Company at 8.2%. One of the
main external forces effecting the industry is the agricultural price index. This reflects the cost of
agricultural products, which are the main input and primary cost components for the frozen food
production industry. Another important consideration for the frozen food production industry is the
image of frozen food in the public's minds. Frozen food producers can only sell to retail groceries if the
retailer believes they can resell that frozen food. Demand for frozen food has decreased due to people
associating any frozen food with highly processed, low-quality fast-food, because both items are stored
in the freezer. This threat to the industry may prove to be an opportunity with a successful marketing
campaign. This industry needs to convince the general public that the offerings are not just frozen, but
freshly frozen (Rebranding Frozen Food). These advertisements should start with the data regarding the
nutritiousness of frozen vegetables and fruit against fresh vegetables and fruit that sat in the fridge or
on the shelf for a few days. Drive home the point that hitting the pause button on food before it reaches
the consumer's home is no different than making a huge pot of chili and putting the leftovers in the
freezer for next week. Then bring up that buying frozen vegetables and fruit is generally inexpensive
and has year round variety (Food Processors). Another potential selling point would be emphasizing the
reduced waste that comes with individually wrapped items. Innovative packaging is key to this idea
because the manufacturer wants to offset the waste from the individual packaging by allowing a
customer to make only what they want to consume at that time and leave the rest in the freezer for
another occasion. Essentially, while the numbers forecasting the future make this industry seem to be
on its way out, they certainly have a chance to change people's minds about how they view the product.

The industries analyzed above have many differences inherent in that they occupy different segments
of the business world as a wholesaler, a consumer goods manufacturer and a service provider. The first
elements that vastly differs between all three is the barriers to entry. To establish a pharmaceutical
wholesaler is substantially more difficult than meeting the requirements to becoming a valid member of
the legal firm industry, with starting a frozen food producer being somewhere in-between. This seems
to be directly correlated with the amount of regulation and indirectly related to the market share
concentration. This connection seems intuitive, with the more legal hoops to jump through, the more
financially risky the investment seems. If the price of creating a pharmaceutical wholesaler is relatively
higher, due to complying with regulations and a high cost of gas or electric, the number of people in the
world able finance this endeavor decreases. The converse is also true, the less money it is to open shop
the larger the number of people able to finance a firm. A particularly interesting difference between the
industries is the potential for global brands. The current globalization rate is characterized as medium
in all of the industries except law firms where it is low. As it was mentioned above, law remains
oriented on location, so global firms would still be scattered throughout the locations they wish to
represent. Therefore, the potential for a global brand is not as easy as it is for the frozen food producers
or pharmaceutical wholesalers. These two industries can take advantage of the fact that in some of the
emerging markets of developing nations, there are not people who can overcome the barriers to entry as
easily as they can. They also have the benefit of being able to export their product, which is the least
costly and least risky way to penetrate a new market. A pharmaceutical wholesaler may have to modify
its logistics to meet the terrain of the satellite country, and a frozen food producer may have to
accommodate local taste preferences in their product, neither of which may be easy but they are both
tasks that are possible. Even if the lawyer is knowledgeable about local law, a law firm cannot put a
lawyer in a court room if the lawyer is not in the country. These elements have an effect on how well
the industry will be able to support global firms.
Some of the industries had individual factors that made them stand out. One of these factors was

median age of the populace, which was a key economic driver for the pharmaceutical wholesaler. Most
of the key economic drivers for the industries analyzed could be boiled down to inputs such as the
price of gas/electric or the agricultural price index. Median age is different in that it is a demographic
modifier, as in the decision to do business in a particular region has to reflect the number of people old
enough to warrant a constant need for prescription pills, preferably affluent enough to purchase the
name brand prescriptions. Another individual element worthy of recognition is that the law firm
industry is the only one of the three whose projected annual growth over 2015-2020 is larger than the
annual growth from 2010-2015. Frozen food is unique in that it is the only one of the three that does
not have a single type of product or service that is almost half of its market share. A third is dedicated
to frozen entrees and another third is dedicated to frozen vegetable. Having a somewhat more robust set
of offerings seems like a strength as opposed to the law firm industry which is connected to the overall
corporate profit. If frozen entrees becomes a dog, the industry can try to bail itself out using the frozen
vegetables, whereas the law firms ability to mitigate the lack of need for its main product is limited.
Overall, the three industries are unique in many aspects, serving varied customers with vastly different
products and services, yet an in depth analysis shows that they do have some similar practices as well
as conditions to operation within.

Works Cited
Flood, John. Institutional Bridging. Boston College International and Comparative Law Review, 2013.
Web. 22 October 2015.
IBIS World. IBIS World, 1999-2015. Web. 22 October 2015.
Nassauer, Sarah. Food Processors. Wall Street Journal, 30 December 2013. Web. 22 October 2015.
Nugent, Kenneth. Value Line. Value Line Inc., 2015. Web. 22 October 2015.

Silver, Carole. Local Matters. Indiana Journal of Global Legal Studies, 2007. Web. 22 October 2015.
Van Den Bos, Lianne. Rebranding Frozen Food: Wider Food Trends Need to be Considered.
Euromonitor International, 28 May 2014. Web. 22 October 2015.