This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Industries That Are Doomed to Fail

Stocks in this article: IMNTVZCTLKOPEPDPSTUCNFLXCSTR

4. The wired telecommunications carrier industry is made up of local, long-distance and international phone-service providers that rely on hard-wired (think telephone lines) technology to send their signals. Its threat comes from the worldwide shift to mobile communications, led by cell phones.

"In recent years, the continuous emergence of new technologies, like naked DSL (digital subscriber line) and voice over internet protocol (VoIP) technologies, and rapidly falling cell phone prices are making this industry particularly risky," IBISWorld says.

But the industry is seen maintaining a core business, as its high barriers to entry, such as stringing new phone lines, means it doesn't face new competition.

The big players in the industry are AT&T (T), Verizon (VZ) and CenturyLink (CTL), and each has diversified into wireless technologies to keep their businesses profitable.

Indicative of the industry's changes, Verizon's wireline division, which includes business- and home-telephone services and its FiOS television offering, continue to contract as more customers made the switch to wireless phone service. In the third quarter, Verizon's wireless revenue fell 1.3%, but it still was a $10 billion business.






3. Soda production, or the manufacture of carbonated soft drinks, now a $17 billion industry, is seen shrinking by 2% per year over the next five years as consumers switch to other, and in most cases, healthier types of beverages.

A core of Coca-Cola (KO) and Pepsi-Cola (PEP) drinkers is expected to remain loyal to their brand, but demand for carbonated soft drinks is seen slowing due to increased competition from energy and sports drinks and ready-to-drink teas and coffees, not to mention bottled water.

Also hurting their prospects is that some state and local governments have proposed or enacted taxes on soft drinks and eliminated them from schools, in order to fight obesity and diabetes. For example, Washington state has imposed a 2-cents-per-12-ounce tax on carbonated beverages since 2007.

Alternative beverage categories have also stepped up their marketing campaigns and gained market share. In 2011, Coca-Cola dominated the carbonated soft drink market in the U.S., with a 16.7% share, followed by Pepsi-Cola at 9.2% and Diet Coke with 9.1%.

These companies have diversified their beverage product offerings to offset declines in carbonated soft drinks but are also seeing steady growth in foreign markets for their carbonated products.

Dr Pepper Snapple Group (DPS) is the third-largest flavored carbonated soft drink maker in the U.S.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs