1. INDUSTRY ANALYSIS

2. TYPES OF ENVIRONMENT Macro environment (General Environment)
Industry Environment
Competitive Environment
Internal Environment

3. Environment of a Firm General Environment Industry Environment
Competitive
Environment
FIRM
Internal
Environment

4. Industry Analysis: Defining an Industry
A group of firms producing products that are close substitutes of each other and compete for the same buyers

5. Industry Analysis: Defining an Industry
Sector
A group of closely related industries
Industry
A group of companies offering products or services that are close substitutes for each other and that satisfy the same basic customer needs
Industry boundaries may change as customer needs evolve and technology changes
Market Segments
Distinct groups of customers within an industry
Can be differentiated from each other with distinct attributes and specific demands

6. The Computer Sector: Industries and Market Segments

7. DOMINANT ECONOMIC TRAITS
Market size
Scope of competitive rivals (local, national, international )
Market growth rate and place of industry in the growth cycle
Number of rivals and their sizes
Number of buyers and their relative sizes
Prevalence of backward and forward integration

8. DOMINANT ECONOMIC TRAITS
Ease of entry and exit
Technological changes in production process and new product introductions
Extent of product differentiation among rivals
Capacity utilization and low-cost efficiency
Degree of learning and experience curve
Capital requirements
Level of industry profitability