1. Industry Analysis
I assume you have read chapter 3, the industry project outline, and sample paper. Your perspective: You are consultants hired by the Mega-Bucks Corp CEO – Me – to answer the corporate level strategy question, what business or industry should we want to be in? Your objective: Determine the attractiveness of your chosen industry. I await your report!

2. Porter’s 5 Forces
My Socio-Econ 

3. Industry Analysis

4. Industry Analysis

5. Industry Analysis

6. Industry Analysis

7. Industry Analysis Industry Structure

8. Is Industry Attractive or Unattractive and Why?
Objective
This is the final statement for your industry project. It is your conclusion from your analysis: Develop conclusions about whether the industry and competitive environment is attractive or unattractive, for long-term survival.
Principle
A firm uniquely well-suited in an otherwise unattractive industry can, under certain circumstances, still earn unusually good profits

9. SOCIO-ECONOMIC INDUSTRY
Government Regulations, legal & political trends
Special Interest Groups
INDUSTRY
Competitors - Rivalry
Economic Trends
THE FIRM
Employees
Investors
Suppliers
Buyers
Substitutes
New Entrants
Technological Change
Social Trends
Demographics
Special Interest Groups

10. Socio-Econ Forces

11. Table 3.2: Relevance of Key Economic Features
Market Size
Market growth rate
Capacity surpluses/shortages
Industry profitability
Entry/exit barriers
Product is big-ticket item for buyers
Standard products
Rapid technological change
Capital requirements
Vertical integration
Economies of scale
Rapid product innovation
Strategic Importance
Small markets don’t tend to attract new firms; large markets attract firms looking to acquire rivals with established positions in attractive industries
Fast growth breeds new entry; slow growth spawns increased rivalry & shake-out of weak rivals
Surpluses push prices & profit margins down; shortages pull them up
High-profit industries attract new entrants; depressed conditions lead to exit
High barriers protect positions and profits of existing firms; low barriers make existing firms vulnerable to entry
More buyers will shop for lowest price
Buyers have more power because it’s easier to switch from seller to seller
Raises risk; investments in technology facilities/equipment may become obsolete before they wear out
Big requirements make investment decisions critical; timing becomes important; creates a barrier to entry and exit
Raises capital requirements; often creates competitive & cost differences among fully vs. partially vs. non-integrated firms
Increases volume & market share needed to be cost competitive
Shortens product life cycle; increases risk because of opportunities for leapfrogging

12. Critical Success Factors This applies more toward the end of the project. Save it for now.
Competitive elements most affecting every industry member’s ability to prosper (Text P. 80)
Specific strategy elements
Product attributes
Resources
Competencies
Competitive capabilities
CSFs spell the difference between
competitive success or failure

13. Critical Success Factors
Answers to three questions pinpoint CSFs
On what basis do customers choose between competing brands of sellers?
What resources and competitive capabilities does a firm need to have to be competitively successful?
What does it take for firms to achieve a sustainable competitive advantage?
CSFs consist of the really major determinants of competitive success in an industry

14. Common Types of Critical Success Factors
Distribution-related
Marketing-related
Skills-related
Organizational capability
Other types
Technology-related
Manufacturing-related
Scientific research expertise; Product innovation capability; Expertise in a given technology; Capability to use Internet to conduct various business activities
Low-cost production efficiency; Quality of manufacture; High use of fixed assets; Low-cost plant locations; High labor productivity; Low-cost product design; Flexibility to make a range of products
Strong network of wholesale distributors/dealers; Gaining ample space on retailer shelves; Having company-owned retail outlets; Low distribution costs; Fast delivery
Fast, accurate technical assistance; Courteous customer service; Accurate filling of orders; Breadth of product line; Merchandising skills; Attractive styling; Customer guarantees; Clever advertising
Superior workforce talent; Quality control know-how; Design expertise; Expertise in a particular technology; Ability to develop innovative products; Ability to get new products to market quickly
Superior information systems; Ability to respond quickly to shifting market conditions; Superior ability to employ Internet to conduct business; More experience & managerial know-how
Favorable image/reputation with buyers; Overall low-cost; Convenient locations; Pleasant, courteous employees; Access to financial capital; Patent protection

15. Decision Matrix