2. Industry Analysis
Chapter 03

3. Category Attractiveness Summary

4. Aggregate Category Factors
Category size
Category growth
Stage in product life cycle
Sales cyclicity
Seasonality
Profits

5. Attractiveness of Market Variables

6. Category Attractiveness over the Product Life Cycle

7. Category Factors Threat of new entrants Bargaining power of buyers
Bargaining power of suppliers
Current category rivalry
Pressure from substitutes
Category capacity

8. 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

9. Threat of new entrants Economies of Scale Product Differentiation
Capital Requirements
Switching Costs
Distribution

10. 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.

11. 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.

12. Major Characteristics of Categories Exhibiting Intensive Rivalries
Many or balanced competitors
Slow growth
High fixed costs
Lack of product differentiation
Personal rivalries

13. Impact of Category Factors on Attractiveness

14. Environmental Factors
Technological
Political
Economic
Regulatory
Social

15. Typology of Technical Developments

16. Conceptualizing Political Risks

17. Projected Population Change in the U.S.: 2000–2010

18. The 10 Themes of N-Gen Culture

19. Evidence of Inequality, as Cited by Federal Reserve Chairman Ben Bernanke

20. Share of Food Purchases

21. Category Attractiveness: Retail Coffee

22. Category Attractiveness: MP3 Phones