Tertiary Industry :- Services-based industries are known as tertiary industries. Retail, food & beverage and professional services are examples of Tertiary Industry
Classifying Industries by Size
Is the industry a small-scale or cottage indutry, a Small & Medium Business (SMB or SME) industry, or a global industry dominated by Multi-National Corporations (MNCs)?
Target Market Classification
Is the industry export-oriented and international, or domestic market focused?
Concentration Classification
Is the market fragmented, with many small 'mom and pop' businesses, or is it consolidated, with rounds of mergers and acquisitions leading to a few dominant players?
The financial, banking and insurance industries, underpin all other world industries, as we have seen during the Financial Crisis. As a result, they deserve special focus.
Financial Industry
The current turmoil in the global financial industry is a result of financial tensions that started brewing in the US in 2007. These financial hiccups culminated into the demise of leading financial institutions. The financial crisis engulfed other developed and developing economies and turned into a full-blown global economic crisis by September 2008. The result was destabilized banking systems, a credit crunch, declining consumer confidence and a downturn in GDP growth rates for most countries.
In order to combat the situation, the US government planned to inject $700 billion injected funds into the economy. The US and European authorities took initiatives such as providing funds to firms to prevent them from declaring bankruptcy, taking over leading financial institutions, providing liquidity and lowering interest rates. The recovery is expected to continue with continued flow of credit and the stabilization of the global financial markets.
Banking Industry
The global banking industry is undergoing intense transformation to negate the risks posed by competing instruments. Certain trends observed in the banking industry to remain profitable are:
- Strategic rethinking vis-à-vis products and markets
- Consolidation and restructuring of banks
- Focus on implementing technological innovations, such as e-banking and e-finance
- Increased inter-industry acquisitions
- Enhanced focus on pensions and mutual funds to help decrease government deficit
The current dismal conditions notwithstanding, a McKinsey & Co research report predicts the doubling of revenues and profits for the banking industry by 2016.
Insurance Industry
The current economic slowdown poses several challenges to the insurance industry, in the form of capital crunches, instable asset values and decreased non-life premium rates. The insurance industry needs to take the following steps to fight these challenges:
- Effective risk management
- Consolidations and mergers that help increase revenue and scale of operations
- Better distribution through direct selling
- Improved agent relationship
- Effective use of the Internet
- Enhanced customer relationship management
- Compliance with security and capital regulations
Although these major world industries are currently experiencing a slowdown, initiatives are in place to ensure growth in the near future.
World Industry: Others
Among the other world industries are:
- Aerospace and Defense
- Airlines
- Automotive Retailing and Services
- Banks: Commercial and Savings
- Beverages
- Building Materials
- Chemicals
- Computer Software
- Computers and Office Equipment
- Construction
- Diversified Financials
- Electronics and Electrical Equipment
- Energy
- Engineering
- Entertainment
- Food and Drug Stores
- Food Consumer Products
- Food Production
- Food Services
- Forest and Paper Products
- General Merchandisers
- Health Care: Insurance and Managed Care
- Health Care: Pharmacy and Other Services
- Household and Personal Products
- Industrial and Farm Equipment
- Information Technology Services
- Insurance
- Mail, Package and Freight Delivery
- Metals
- Mining, Crude-oil production
- Motor Vehicles and Parts
- Network and Other Communications Equipment
- Petroleum Refining
- Pharmaceuticals
- Pipelines