The key success factors in an industry
A)are those competitive factors that most affect industry members' abilities to prosper in the marketplace-the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss.
B)are determined by the industry's driving forces, which are essential to surviving and thriving in the industry.
C)hinge on how many different strategic groups the industry has operating within the industry and their level of profitability and sustainable advantages.
D)depend on how many rivals are trying to move from one strategic group to another without losing momentum.
E)are a function of such considerations as how many firms are in the industry, how many have market shares above 5 percent, and whether the business models being used are similar or diverse.

Question

Quizplus · Accepted Answer

Key success factors are those elements that differentiate between a strong and weak competitor, and between profit and loss. These factors include strategy, product attributes, operational approaches, resources, and competitive capabilities.

B, C, D, and E are all incorrect because they do not fully capture the essence of key success factors in an industry. While driving forces, strategic groups, and industry dynamics are important considerations, they do not solely determine a company's ability to prosper in the marketplace. Key success factors are more closely related to a company's internal strengths and capabilities.

The Key Success Factors in an Industry