This document discusses industry and competitive analysis. It covers categorizing competitors' objectives and strategies, identifying key success factors, and assessing industry attractiveness. Key points include: 1) Competitors can be analyzed based on their competitive scope, strategic intent, market share objectives, competitive position, strategic posture, and competitive strategies. 2) Key success factors are the elements that most affect a firm's ability to prosper and include product attributes, resources, competencies, and capabilities. 3) Assessing industry attractiveness involves considering factors like market size, competitive conditions, potential for entry/exit of firms, and stability of demand. Both near and long-term profitability should be analyzed.

1. CHAPTER -3
INDUSTRY AND
COMPETITIVE
ANALYSIS
Mohammad Mizenur Rahaman
Ph.D Researcher
Assistant Professor
Shahjalal University of Science & Technology, Sylhet
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2. Q-1: Categorizing the Objectives and
Strategies of Competitors
Competitive Strategic Market Share Competitive Strategic Competitive
Scope Intent Objective Position Posture Strategy
• Aggressive •Getting •Striving for
• Be dominant •Mostly
• Local expansion via stronger; on low-cost
leader offensive
acquisition & the move leadership
• Overtake internal •Mostly
growth •Well- •Mostly
• Regional industry focusing on a
entrenched defensive
leader market niche
• Be among • Expansion •Stuck in the •Combination •Pursuing
• National industry via internal middle of the of offensive & differentiation
leaders growth pack defensive based on
•Going after a – Quality
• Move into • Expansion •Aggressive – Service
• Multicountry different
top 10 via acquisition
position
risk-taker – Technology
superiority
• Move up a – Breadth of
• Hold on to •Struggling; •Conservative
• Global notch in product line
present share losing ground follower
rankings – Image &
• Maintain •Give up reputation
current present share – More value
•Retrenching
position to achieve for the money
to a position
short-term – Other
that can be
profits attributes
• Just survive defended
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3. Question 2: What Are the Key
Factors for Competitive Success?
l KSFs are competitive elements that most
affect every industry member’s ability to
prosper in the marketplace
4 Specific strategy elements
4 Product attributes
4 Resources
4 Competencies
4 Competitive capabilities
l KSFs spell difference between
4 Profit and loss
4 Competitive success or failure
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4. Identifying Industry
Key Success Factors
l Answers to three questions pinpoint KSFs
4 On what basis do customers choose between
competing brands of sellers?
4 What must a seller do to be competitively
successful -- what resources and competitive
capabilities does it need?
4 What does it take for sellers to achieve a
sustainable competitive advantage?
l KSFs consist of the 3 - 5 really major
determinants of financial and competitive
success in an industry 4
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5. Example: KSFs for Apparel
Manufacturing Industry
l Fashion design -- to
create buyer appeal
l Low-cost manufacturing
efficiency -- to keep selling
prices competitive
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6. Example: KSFs for Tin and
Aluminum Can Industry
l Locating plants close to end-use
customers -- to keep costs of shipping
empty cans low
l Ability to market plant output within
economical shipping distances
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7. Strategic Management Principle
A sound strategy incorporates
efforts to be competent on all
industry key success factors and
to excel on at least one factor!
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8. Question 3: Is the Industry
Attractive or Unattractive and Why?
Objective
Develop conclusions about whether the industry
and competitive environment is attractive or
unattractive, both near- and long-term, for
earning good profits
Principle
A firm uniquely well-suited in an otherwise
unattractive industry can, under certain
circumstances, still earn unusually good profits
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9. Things to Consider in
Assessing Industry Attractiveness
l Industry’s market size and growth potential
l Whether competitive conditions are conducive to
rising/falling industry profitability
l Will competitive forces become stronger or
weaker
l Whether industry will be favorably or unfavorably
impacted by driving forces
l Potential for entry/exit of major firms
l Stability/dependability of demand
l Severity of problems facing industry
l Degree of risk and uncertainty in industry’s future 9
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10. Conducting an Industry and
Competitive Situation Analysis
l Two things to keep in mind:
1. Evaluating industry and competitive
conditions cannot be reduced to a
formula-like exercise--thoughtful
analysis is essential
2. Sweeping industry and competitive
analyses need to done every 1 to 3
years
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