Learn to map company alignment with sector growth

We have heard about Technology Firms of US, Automobile Industry of Germany, Electronics Manufacturing in Japan and IT industry in India. All these Countries are specialised in these respective products or services and therefore offer a huge potential for the overall growth and return.

The economy goes through cycles and periods of very high growth and low growth. Under such conditions, there are some sectors that lead the growth in the economy, are able to outperform the growth rates of the market and give higher results, while some of them relatively underperform.

But how come there are vast differences in performance of different sectors operating in the same Economy. There are some sectors that lead the growth in the Economy. It is because their resource availability and Output is mapped with the needs of the Economy, and are able to provide products or services that are vital for the growth of the Economy.

These companies didn’t do something highly extraordinary but were able to identify the needs of the Economy and work in that direction. All companies in this sector are able to provide great returns. Same was the scene with the IT industry in India over the last 20-25 years.

Therefore one needs to study different sectors to analyse any such opportunity present in the market, identify what lies in the future of those sectors, and see if any change in consumer behaviour is expected or not. This analysis helps to identify good profitable opportunities that can be utilised.

But you may have some questions –

1.How to identify such opportunities?

3.What factors lead to the growth of a sector in Economy, like the IT industry in India?

4.What other things should be kept in mind while making such Analysis?

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