This document outlines key factors for analyzing industry attractiveness: 1. Economic traits like market size, growth cycle, and profitability. 2. Porter's five competitive forces including substitutes, suppliers, buyers, potential entrants, and rivalry among sellers. 3. Key success factors such as technology and product innovation capabilities, manufacturing skills, distribution networks, marketing abilities, and organizational competencies. 4. Potential strategic moves by rivals regarding market objectives, strategic posture, and competitive strategies.

1. INDUSTRY ANALYSIS IV

2. Toolkit Determinants of industry attractiveness #1. Economic Traits #2. Competitive Forces #3. Key Success Factors #4. Likely Moves by Rivals

3. #1 Dominant Economic Traits Market Size Scope of Competition - Local Regional - National Global Industry Growth Cycle - Early Takeoff - Mature Stagnant - Decline

4. Dominant Economic Traits Prevalence of Backward and Forward Linkage Pace of Technological Change Learning Curve Effect Capital Requirement Profitability (above/below par)

5. #2 Porter’s Five Forces Substitute Products (of firms in other industries) Suppliers of Key Inputs Buyers Potential New Entrants Rivalry Among Competing Sellers

6. #3. Key Success Factors Technology: Product Innovation Capability Production Process Innovation Capability Expertise in given technology Manufacturing : Scale economy Experience curve effect High Labour Productivity Flexibility to manufacture a range of products

7. KSF Distribution: Low distribution cost Company-owned retail outlets Fast delivery Marketing: Well-trained sales force Dependable service and technical assistance Attractive styling/packaging

8. KSF Skills: Quality control know how Design expertise Expertise in particular technology Organization: Superior Information System Managerial know-how Ability for quicker response to market

9. KSF Others: Convenient Location Courteous Employees Patent Protection

10. #4. Likely Strategic Moves by Rivals Strategic Intent: Be dominant leader Move into top 5 Maintain position Market Objective: Getting stronger, on the move Well-entrenched, able to maintain position All things to everybody

11. Moves by Rivals Strategic Posture: Mostly offensive Mostly defensive Aggressive risk taker Competitive Strategy: Striving for low cost leadership Mostly focusing on market niche Pursuing differentiation