The factors to consider in profiling an industry’s economic features are as follows:
a) Market size
b) Scope of competitive rivalry (local, regional, national or global)
c) Market growth rate
ADVERTISEMENTS:
d) Number of rivals and their relative sizes
e) Small companies and dominant companies in the industry
image source: publishyourarticles.net/wp-content/uploads/2015/06/economy.jpg
f) The number of buyers and their relative sizes
ADVERTISEMENTS:
g) The types of distribution channels used to access consumers
h) The pace of technological change in both process innovation and product introductions
i) Whether companies can realize economies of scale in purchasing, manufacturing, transportation, marketing, or advertising
j) Whether key industry participants are clustered in a particular location
ADVERTISEMENTS:
k) Whether certain industry activities are characterized by strong learning and experience effects (“learning by doing”) such that unit costs decline as cumulative output grows
l) Whether high capacity utilization are crucial to achieving low-cost efficiency
m) Capital requirements and the ease of entry and exit
n) Whether industry profitability is above/below par