Prepare a short analysis on the attractiveness of the industry you have selected. Some questions that may be relevant to your summary are included below.
· What is the size and growth rate of the market, e.g. what were annual United States sales for the industry during the past ten years according to the Standard Industrial Classification (SIC) or the North American Industrial Classification System designation (NAICS)?
· What is the stage of the product life cycle, e.g. has the market entered the mature phase where any gain in customers must come at the expense of competitors?
· How cyclical is the market, e.g. does the market exhibit any business cycle or seasonality which could cause cash flow problems?
· What is the cost structure of the industry, e.g. does the industry appear to be capital intensive or exhibit a high degree of operating leverage?
· How profitable is the industry, e.g. what were average industry earnings for the last ten years according to Standard and Poors?
· To what extent is the health of your industry dependent on events in another industry, e.g. are your customers original equipment manufacturers concentrated in an industry which depends on interest rates?
· How easily can products from other industries be substituted for your product, e.g. are there trends in other industries that suggest there may be new substitutes for your product in the near future?
The question belongs to Marketing and it discusses about attractiveness of an industry. The industry that has been chosen here is sports and leisure industry. A brief description about the attractiveness of the industry has been given in the solution.
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