The aluminum industry is suffering from long-term decline in prices and profits interspersed with relatively short-lived price and profit peaks. Investigates the case, why it happened, focusing on solving Alusaf should do about how to invest in a major new tool in reducing the prices of aluminum. Courseware provides data on the cost of all the objects in the industry for the development of the supply curve. It also provides a model of supply and demand, which allows students to explore: drivers average profitability of the industry and the relative profitability of individual players in it, the effect of changes in demand for the business cycle on the price of the metal and the influence of different price elasticities of demand for and profitability of oligopolistic pricing impact on the profitability of the industry , the effect of adding power to the profitability of the industry and the firm's ability to anticipate the aluminum market. Rewritten version of the previous case. "Hide
by Kenneth Corts, John R. Wells Source: Harvard Business School 11 pages. Publication Date: December 15, 2003. Prod. #: 704458-PDF-ENG
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