Industry Analysis Chapter 03
Category Attractiveness Summary
Aggregate Category Factors Category size Category growth Stage in product life cycle Sales cyclicity Seasonality Profits
Attractiveness of Market Variables
Category Attractiveness over the Product Life Cycle
Category Factors Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Current category rivalry Pressure from substitutes Category capacity
Factors in Assessing the Structure of Industries Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Amount of intracategory rivalry Threat of substitute products or services
Threat of new entrants Economies of Scale Product Differentiation Capital Requirements Switching Costs Distribution
Buyer Bargaining Power is High When: Product bought is a large percentage of the buyer’s cost. Product bought is undifferentiated. Buyers earn low profits. Buyer threatens to backward integrate. Buyer has full information. Substitutes exist for the seller’s product or service.
Supplier Bargaining Power is High When: Suppliers are highly concentrated, that is, dominated by a few firms. There is no substitute for the product supplied. Supplier has differentiated its product or built in switching costs. Supply is limited.
Major Characteristics of Categories Exhibiting Intensive Rivalries Many or balanced competitors Slow growth High fixed costs Lack of product differentiation Personal rivalries
Impact of Category Factors on Attractiveness
Environmental Factors Technological Political Economic Regulatory Social
Typology of Technical Developments
Conceptualizing Political Risks
Projected Population Change in the U.S.: 2000–2010
The 10 Themes of N-Gen Culture
Evidence of Inequality, as Cited by Federal Reserve Chairman Ben Bernanke
Share of Food Purchases
Category Attractiveness: Retail Coffee
Category Attractiveness: MP3 Phones