Hostile market

An industry characterized by low industry average returns on investment for the majority of the industry and by industry average sales growth rates below 20% per annum. These low industry average returns fall below 7% ROE, below 9% RONCE or 7% pre-tax allocated operating profits to allocated assets for business segment measures. This condition, the result either of a fall in demand or of the expansion of competitors in the market, is marked by intense price competition and, often, unit volume growth below 5% per annum.