What factors may a company consider when measuring industry attractiveness and business strengths? Should these factors vary from one business to another in a company?
What will be an ideal response?
Some of the factors a business may consider for industry attractiveness are size of the industry, growth rate, inflation, industry profitability, capital intensity, and inflation vulnerability. Factors to consider for business strengths are market share, price competitiveness, sales/distribution effectiveness, relevance of the experience effect, cash throw-offs, etc. While most factors are common to all businesses, some are more relevant to certain businesses than to others.
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