Strategic Management Resource Guide

Industry Attractiveness Factors

Market Size:

To determine the market size of an industry, focus on sales and revenue figures. Use Standard and Poor's NetAdvantage and access an "Industry Survey" to look for information about the market size of an industry. Or, use Business & Company Resource Center, perform an industry search, and read the "Industry Overview" to find information about total sales and revenue of an industry. The "Comparative Company Analysis" in the "Industry Surveys" in Standard and Poor's NetAdvantage will give an approximation of the total sales and revenue for the top competitors in an industry. Another option is to use Value Line's Investment Survey Reports and lookup an "Investment Survey" for an industry to view revenue and sales figures.

Projected Growth Rate:

This figure calculates the rate of growth of an industry over time in years. Use the "Industry Surveys" in Standard and Poor's NetAdvantage, the "Industry Overview" in Business & Company Resource Center, or an "Investment Survey" for an industry in Value Line's Investment Survey Reports to locate information about projected growth of the industry. Alternatively, try using the popular press by performing keyword searches in business databases such as ABI/INFORM Complete, Business Full Text, or Business Source Premier. Lastly, look at the "Comparative Company Analysis" in the "Industry Surveys" in Standard and Poor's NetAdvantage to see how the top companies in an industry have grown in the last several years.

Intensity of Competition:

Use Standard and Poor's NetAdvantage to look up a company in a particular industry. From the company screen, use the links named "Competitors (All)" and "Competitors (S&P covered)" to view a list of the top competitors in an industry. Or, use the "Company Profiles" link in Business Source Premier to read the Datamonitor Report for a company in an industry and view a list of "Top Competitors." Or, use the Business & Company Resource Center to perform an "Industry Description Search." Select the "Company Profiles" tab to view a list of companies ranked in order by revenue.

Resource Requirements:

This factor describes the barriers to entry and resource requirements to get into the industry. Try using the "Industry Surveys" in Standard and Poor's NetAdvantage, the "Industry Overview" in Business & Company Resource Center, or an "Investment Survey" for an industry in Value Line's Investment Survey Reports.

Emerging Opportunities:

Use the "Industry Surveys" in Standard and Poor's NetAdvantage, the "Industry Overview" in Business & Company Resource Center, an "Investment Survey" for an industry in Value Line's Investment Survey Reports, or look up the SWOT Analysis for several of the companies in an industry in the Datamonitor Report, found under the "Company Profiles" link in Business Source Premier.

Emerging Threats:

Use the "Industry Surveys" in Standard and Poor's NetAdvantage, the "Industry Overview" in Business & Company Resource Center, an "Investment Survey" for an industry in Value Line's Investment Survey Reports, or look up the SWOT Analysis for several of the companies in an industry in the Datamonitor Report, found under the "Company Profiles" link in Business Source Premier.

Seasonal/Cyclical Influence:

Use the "Industry Surveys" in Standard and Poor's NetAdvantage, the "Industry Overview" in Business & Company Resource Center, an "Investment Survey" for an industry in Value Line's Investment Survey Reports, or look up the SWOT Analysis for several of the companies in an industry in the Datamonitor Report, found under the "Company Profiles" link in Business Source Premier.

Social Environment:

This refers to the social tastes of a community or market and the social acceptance of products delivered by an industry. Try using the "Industry Surveys" in Standard and Poor's NetAdvantage, an "Investment Survey" for an industry in Value Line's Investment Survey Reports, or the "Industry Overview" in Business & Company Resource Center. Also try using the popular press by performing keyword searches in business databases such as ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Political Environment:

To determine how political events affect the industry, use the CIA World Factbook to learn how industries in different countries are impacted by politics. Alternatively, use the popular press by performing keyword searches in business databases such as ABI/INFORM Complete, Business Full Text, or Business Source Premier. Useful information may also be found in the "Industry Surveys" in Standard and Poor's NetAdvantage, an "Investment Survey" for an industry in Value Line's Investment Survey Reports, or the "Industry Overview" in Business & Company Resource Center.

Regulatory Environment:

How regulated by the government is an industry? Highly regulated or non-regulated? Try using the "Industry Surveys" in Standard and Poor's NetAdvantage, an "Investment Survey" for an industry in Value Line's Investment Survey Reports, or the "Industry Overview" in Business & Company Resource Center. Another option is to search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Industry Profitability:

Look at revenues and sales of the industry to judge this factor. Use the "Industry Surveys" in Standard and Poor's NetAdvantage, an "Investment Survey" for an industry in Value Line's Investment Survey Reports, or the "Industry Overview" in Business & Company Resource Center to look for specific figures. In the "Industry Surveys" for Standard and Poor's NetAdvantage, look at the "Comparative Company Analysis" to see financial numbers for the top competitors in an industry. Also, try using the Business & Company Resource Center to perform an "Industry Description Search." Select the "Company Profiles" tab to view a list of companies ranked in order by revenue.

Industry Uncertainty/Risk:

Look for comments by stock analysts and beta numbers for stocks. To find beta numbers for company stocks, use the database Value Line's Investment Survey Reports. Look up a company in Value Line and pull up the most recent investment report to see the beta number for the company's stock. Try doing this with several companies in an industry.

Competitive Strength Factors

Relative Market Share:

Use Business & Company Resource Center to perform a "Company Search." When the company profile page has been accessed, select the tab at the top named "Rankings." Next, select the green tab at the top named "Market Share." Examine the list of "Market Share Reporter" document titles that is returned and select the one that matches best to see market share percentages. **Not all companies will be included in the "Market Share Reporter," only the top performers, with the last slot reserved for "Other." Alternatively, try keyword searches in the popular press in databases such as ABI/INFORM Complete, Business Full Text, or Business Source Premier. ***To calculate a number for the test, determine the percentage market share of your company and divide by the percentage number of the top company's market share. Then, move the decimal place over by one point.***

Costs Relative to Competitors:

Look up a company's operating costs in Standard and Poor's NetAdvantage by doing a company search and selecting the "Financials" link from the company profile page. Look at the company's competitors to see operating costs relative to its' competitors. Use Business & Company Resource Center to perform a "Company Search" and look for financial data about the company and do the same for its' competitors.

Ability to Match Rivals on Key Product Attributes:

Use Business Source Premier and click the "Company Profiles" link to access the "Datamonitor Report" for a company. Inside the report, look at the "Major Products and Services" section for the company and do the same for the company's competitors in order to see how the company matches rivals on key product attributes.

Bargaining Leverage with Suppliers:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Bargaining Leverage with Buyers:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Caliber of Alliances:

Companies can work together without merging and maintain exclusive contracts with one another. To find this type of information about a specific company, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Strategic Fit with Sister Businesses:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Technology and Innovation Capabilities:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Match with Key Industry Success Factors:

For this factor, use both company AND industry information. For the company portion, look up the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center. For the industry portion, use Standard and Poor's NetAdvantage and access the most recent "Industry Survey" and look at "Key Industry Ratios and Statistics," and "How to Analyze an [industry company]."

Brand Name Reputation/Image:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Profitability Relative to Competitors:

Use Yahoo! Finance and access the Industry Center. Select specific industry, and look for link named "Industry Browser" (should be on left hand side of screen)to access a list of companies in that industry. Look under the heading "Net Profit Margin" to see relative profitability for different companies.

Knowledge of Customer Markets:

How well does the company know its' customers? Try searching the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Unique Production Capabilities:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Supply Chain Management:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Marketing Skills:

Access the company's profile using Standard and Poor's NetAdvantage or Business & Company Resource Center and look around for this information. Or, search the popular press using keyword searches in the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

Ample Financial Resources:

Use Standard and Poor's NetAdvantage, Business & Company Resource Center, or Value Line's Investment Survey Reports to access the company profile and examine it for the company's assets and financial profile.

Caliber of Management:

Who are the managers of the company? Use Standard and Poor's NetAdvantage or Business & Company Resource Center to access the company profile and see who the managers are. Alternatively, try accessing the "Datamonitor Report" for the company in Business Source Premier. Look for the links on the left named "Key Employees" and "Key Employee Biographies." Lastly, do keyword searches of these names in the popular press using the databases ABI/INFORM Complete, Business Full Text, Business Source Premier, or articles in the Business & Company Resource Center.

This page is maintained by Blake Pridgen. Please contact at bpridgen@flagler.edu with any feedback, comments, or suggestions.