Page 7 - CL Industry Analysis

• Entry of major competitors

• Sudden regulation or deregulation

Identifying industries with desirable characteristics is built
upon identifying the:

• Best industries to enter i.e. those with high-growth,

high profitability, and with low barriers to entry

• Worst industries to enter i.e. those that are declining,

barely profitable, highly competitive, and highly
regulated, with higher barriers to entry

For a company to successfully enter an industry it needs to

be prepared, to understand the ways the industry is

changing and to understand fully how it needs to compete

successfully.

Industry analysis allows companies to focus on the potential

of the industry by identify the threats and opportunities

facing the businesses, and to focus their resources on
developing unique capabilities that support a competitive

advantage.