An industry or market can be analyzed for its attractiveness to a particular company or organization on a number of different characteristics. The list below presents some of the more significant market characteristics that should be considered.
Current market size
Projected market growth rate
Number of competitors, level of fragmentation
Intensity of competition
Technological skills required
Production/operations skills required
Capital requirements
Other barriers to entry
Seasonal and cyclical factors
Industry profitability and returns
Social, political, regulatory and environmental factors
Strategic fits with other businesses already owned
Adapted and updated by Raymond S. Kulzick from Thompson and Strickland (7th edition). R. S. Kulzick. 11/94.