Industry’s Dominant Economic Features

Identification of industry’s dominant economic features is very important for analyzing a company’s industry’s and competitive environment. It also provides an overview of the over all landscape of industry. So basically it helps the organization to know the different kind of strategic moves that industry members are likely to employ. Some of the important industry’s dominant economic features are given below.

Market size and growth rate

Market size refers to the total number of firms operating in the industry. It is also important to know whether the industry is growing, static or declining. It depends upon the position of industry in the business life cycle i.e. early development, rapid growth, early maturity, maturity, stagnation, decline.

Number of rivals

Organizations should also know whether the industry contains too many small rivals or is it dominated by a few large firms. Similarly they should also know about the various development in the industry such as mergers and acquisitions etc.

Scope of competitive rivalry

Scope of competitive rivalry is an important factor for the organizations to know about the level of competition. Industry members must know about the nature of future competition. For example if a company realizes that its future success depends upon diversification, product development and market expansion, then it must start planning from the very first day.

Buyer needs and requirements