1. KEY SUCCESS FACTORS

2. 5. What Strategic Moves are Rivals Likely to Make?
Need to monitor the actions of rivals carefully
Identify competitors strategies
Evaluate who are going to be the major players in the market.
Predict competitors’ next moves
Strategic intent
How well it is faring in the market
Financial performance
Market Intelligence System

3. 6. What are the Key Factors for Competitive Success?
Key Success Factors (KSFs) are the strategy-related actions / approaches that a firm must be competent at doing to be successful.
Managers must know the industry well to know which factors are more important and which factors less.
Managers need to use KSFs as cornerstones for company’s strategy.
Mostly industry has few KSFs, three to four and managers should rank them in order of their importance.

4. Key Success Factors in Brewery
Full utilization of brewing capacity to keep cost low
A strong network for distribution
Appropriate advertising

5. Key Success Factors in Banking
Use of technology
Product innovation
Low cost
Customer service and orientation

6. 7. Is the Industry Attractive and What are Its Prospects for Above-average Profitability?
Attractive industry invites more competitors

7. Attractiveness of industry depends on
Industry’s growth potential
Whether the prevailing driving forces are favorable or unfavorable
Potentials of entry/exit of major firms
Stability of demand
Whether competitive forces will be stronger or weaker
Risk and uncertainty in the industry’s future

8. If an industry’s overall profitability prospects are above average, the industry can be considered attractive
Attractive is a relative term.
It needs to be appraised from the standpoint of a particular company.
USE OF SCENARIOS