An industry's key success factors
A) are a function of market share, entry barriers, economies of scale, degree of vertical integration, and industry profitability.
B) vary according to whether an industry has high or low long-term attractiveness.
C) can be determined from an analysis of an industry's dominant economic characteristics, what competition is like, the impacts of the driving forces, the comparative market positions of industry members, and the likely next moves of industry rivals.
D) can be determined from studying the "winning" strategies of the industry leaders and ruling out as potential key success factors the strategy elements of those firms considered to have "losing" strategies.
E) depend on the relative competitive strengths of the industry leaders and how vulnerable they are to competitive attack.

Question

Quizplus · Accepted Answer

Key success factors can be determined from analyzing an industry's dominant economic characteristics, competition, driving forces, market positions of industry members, and likely next moves of rivals. This analysis helps identify the critical factors that determine success within the industry. Market share, entry barriers, economies of scale, degree of vertical integration, and industry profitability are all factors that may impact key success factors but are not necessarily the key success factors themselves. The level of industry attractiveness may impact the importance of certain key success factors, but it does not determine them outright. Studying winning strategies and ruling out losing strategies can inform strategy development but is not a comprehensive way to identify key success factors. The relative competitive strengths of industry leaders and their vulnerability to attack may impact competitive dynamics within the industry but are not necessarily the key success factors themselves.

An Industry's Key Success Factors