discuss question
Xiaoxuan Qu
Bus490-01
Dr. Paul D. Maxwell
September 3. 2014
Discuss Question 3
An industry's key success factors (KSFs) are those things that most affect industry members' ability to prosper in the marketplace-the particular strategy elements, product attributes, resources, competencies, competitive capabilities, and business outcomes that spell the difference between profit and loss and, ultimately, between competitive success or failure. KSFs by their very nature are so important that all firms in the industry must pay close attention to them-they are the prerequisites for industry success or, to put it another way, KSFs are the rules that shape whether a company will be financially and competitively successful.
In the beer industry, the KSFs are full utilization of brewing capacity (to keep manufacturing costs low), a strong network of wholesale distributors (to gain access to as many retail outlets as possible), and clever advertising (to induce beer drinkers to buy a particular brand and thereby pull beer sales through the established wholesale/retail channels). In apparel manufacturing, the KSFs are appealing designs and color combinations (to create buyer interest) and low-cost manufacturing efficiency (to permit attractive retail pricing and ample profit margins). In tin and aluminum cans, because the cost of shipping empty cans is substantial, one of the keys is having plants located close to end use customers so that the plant's output can be marketed within economical shipping distances (regional market share is far more crucial than national share).
Determining the industry's key success factors, given prevailing and anticipated industry and competitive conditions, is a top-priority analytical consideration. At the very least, managers need to understand the industry situation well enough to know what is more important to competitive success and what is less important. They need to know what kinds of resources are competitively
Bus490-01
Dr. Paul D. Maxwell
September 3. 2014
Discuss Question 3
An industry's key success factors (KSFs) are those things that most affect industry members' ability to prosper in the marketplace-the particular strategy elements, product attributes, resources, competencies, competitive capabilities, and business outcomes that spell the difference between profit and loss and, ultimately, between competitive success or failure. KSFs by their very nature are so important that all firms in the industry must pay close attention to them-they are the prerequisites for industry success or, to put it another way, KSFs are the rules that shape whether a company will be financially and competitively successful.
In the beer industry, the KSFs are full utilization of brewing capacity (to keep manufacturing costs low), a strong network of wholesale distributors (to gain access to as many retail outlets as possible), and clever advertising (to induce beer drinkers to buy a particular brand and thereby pull beer sales through the established wholesale/retail channels). In apparel manufacturing, the KSFs are appealing designs and color combinations (to create buyer interest) and low-cost manufacturing efficiency (to permit attractive retail pricing and ample profit margins). In tin and aluminum cans, because the cost of shipping empty cans is substantial, one of the keys is having plants located close to end use customers so that the plant's output can be marketed within economical shipping distances (regional market share is far more crucial than national share).
Determining the industry's key success factors, given prevailing and anticipated industry and competitive conditions, is a top-priority analytical consideration. At the very least, managers need to understand the industry situation well enough to know what is more important to competitive success and what is less important. They need to know what kinds of resources are competitively