1. a) How attractive is the [industry name] industry?

List and explain the various factors that affect its

attractiveness.
Framework: Porter's Five Forces Analysis
1. *Threat of New Entrants:* Assess barriers like capital requirements, proprietary technology,
economies of scale, etc.
2. *Bargaining Power of Buyers:* Examine if buyers are concentrated, have strong negotiation power
3. *Bargaining Power of Suppliers:* Review if limited suppliers or if their products/services are unique.
4. *Threat of Substitute Products:* Analyze the availability, price, and quality of alternative
products/services.
5. *Intensity of Rivalry among Existing Competitors:* Check for number of competitors, industry growth
rate, fixed costs, etc.

1. b) What are the critical success factors in this industry?

Framework: *Value Chain Analysis*
1. *Supply Chain Efficiency:* Review the effectiveness of raw material sourcing, production processes.
2. *Product Quality:* Consistency, refining processes, differentiation.
3. *Distribution Network:* Accessibility to market, logistical efficiency.
4. *Marketing and Branding:* Market presence, customer perception, advertising strength.

2. a) How does the environment affect the attractiveness of the [industry name] industry?
Framework: *PESTEL Analysis*
1. *Political:* Government policies, stability, trade regulations.
2. *Economic:* Economic cycles, inflation, currency strengths.
3. *Sociocultural:* Consumer habits, demographics, cultural preferences.
4. *Technological:* Innovations, R&D, technological barriers.
5. *Environmental:* Sustainability, environmental regulations.
6. *Legal:* Industry-specific regulations, international laws.

2. b) What measures would you suggest for improving the attractiveness of the industry?
Framework: *SWOT Analysis*
1. *Strengths:* Build on core advantages of the industry.
2. *Weaknesses:* Address inherent flaws or challenges.
3. *Opportunities:* Explore emerging trends, markets, or technologies.
4. *Threats:* Develop strategies to tackle potential risks.

3. a) How is the [industry name in Country A] different from the [industry name in Country B]?
Framework: *Comparative Analysis*
1. *Production Volume:* Scale and capacity differences.
2. *Exports/Imports:* International market presence.
3. *Technology and Innovation:* Adoption rate of new techniques.
4. *Government Support:* Differences in policies, subsidies, etc.

3. b) Are the two industries likely to converge in terms of their structural characteristics? Why? What
steps can be taken to achieve convergence?
Framework: *Scenario Analysis*
1. *Likelihood of Convergence:* Identify similarities or trends bringing them closer.
2. *Factors Preventing Convergence:* Identify divergent trends or challenges.
3. *Steps for Convergence:* Recommend collaborations, best practice sharing, regulations, etc.
Sources of competitive advantage:

Causal ambiguity | Path dependence | Uncertain imitability | Economies of learning

Differentation: Can be broad focused (multiple products) as well as narrow focused (Apple).
Differentiated firms still need to ensure that they have a low cost of operation.

Straddling: Firms can pursue both differentiation and cost leadership.

Resource and capability in building: Relative strength vs. Strategic importance (Pg. 110)

Types of resources

Tangible Intangible Human

• Financial (Cash,
securities, borrowing,
capacity)
• Physical (plant,
equipment, mineral
reserve)
• Technology (patents, • Skills/know-how
copyrights, trade secrets) • Capacity for
• Reputation (brands, communication and
relationships) collaboration
• Culture • Motivation

Capability analysis: [Pg. 102]

1. Functional analysis – Identifying organization capabilities within each
of firm’s operational areas like engineering, R&D etc.
2. Value chain analysis

Dynamic capabilities are valued the most as they allow the modification
and adaptation of lower level operational and functional capabilities.

Resources to establish competitive advantage must be scarce, relevant.

To sustain, must be durable, transferable and replicable.
To appropriate, companies must have property rights, relative bargaining
power and embeddedness.

[Pg. 105]

Segmentation analysis and strategic groups – Pg 87

Business Canvas Model – Pg. 79