What is the purpose of a credit analyst investigating the market structure of an industry (e.g., unregulated monopoly, oligopoly, etc.)?

What will be an ideal response?

A credit analyst will look at the market structure of an industry (e.g., unregulated monopoly, oligopoly, etc.) because of its implications regarding factors such as price, supply, product quality, distribution capabilities, image, product differentiation, or service. With respect to pricing, the credit analyst will look at the market structure of an industry because of its implications on pricing flexibility. As concerns supply, a credit analyst should examine whether or not a company is self-sufficient in its factors of production. For example, the analyst will want to know if the firm is sufficiently powerful in its industry to pass along increased costs.