A. What are the industry’s dominant economic characteristics? B. What kinds of competitive forces are industry members facing? C. What factors are driving industry changes and what impacts will they have? D. What market positions do rivals occupy – who is strongly positioned and who is not? E. What strategic moves are rivals likely to make next? F. What are the key factors for future competitive success? G. Does the outlook for the industry present an attractive opportunity? Answer these interrelated questions here. 1. Will competitive dynamics of the industry, and likely future changes outside of the industry, make it likely that any company can be successful? 2. What is the likelihood that a company that successfully competes in this industry in the future will earn better than its cost of capital, i.e. that it will be financially successful? 3. What business do you think one should pursue given the analysis you have done in #1.
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