Industry Attractiveness
Assess the industry your proposed business will be entering at the five-digit NAICS
code level. Use a broader industry category (less NCICS digits) if necessary
(http://www.census.gov/epcd/www/naicstab.htm)
Assess the attractiveness of the industry in which the potential business plans to
operate, on each of the following dimensions.
Industry Attractiveness Assessment Tool
Low Potential Moderate Potential High Potential
1. Number of competitors Many Few None
2. Age of industry Old Middle aged Young
3. Growth rate of industry Little or no
growth
Moderate growth Strong growth
4. Average net income for
firms in the industry
Low Medium High
5. Degree of industry
concentration
Concentrated Neither
concentrated nor
fragmented
Fragmented
6. Stage of industry life
cycle
Maturity
phase or
decline phase
Growth phase Emergence
phase
7. Importance of industry’s
products and/or services
to customers
“Ambivalent” “Would like to
have”
“Must have”
8. Extent to which
business and
environmental trends
are moving in favor of
the industry
Low Medium High
9. Number of exciting new
product and services
emerging from the
industry
Low Medium High
10. Long-term prospects Weak Neutral Strong
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Target Market Attractiveness
Identify the specific market segment within your broader industry that you plan to
target.
Assess the attractiveness of the target market on each of the following dimensions.
Target Market Attractiveness Assessment Tool
Low Potential Moderate Potential High Potential
1. Number of competitors
in target market
Many Few None
2. Growth rate of firms in
the target market
Little to no
growth
Slow growth Rapid growth
3. Average net income for
firms in the target
market
Low Medium High
4. Methods for generating
revenue in the industry
Unclear Somewhat clear Clear
5. Ability to create “barriers
to entry” for potential
competitors
Unable to
create
May or may not be
able to create
Can create
6. Degree to which
customers feel satisfied
by the current offerings
in the target market
Satisfied Neither satisfied or
dissatisfied
Unsatisfied
7. Potential to employ low
cost guerrilla and/or
buzz marketing
techniques to promote
the firm’s product or
services
Low Moderate High
8. Excitement surrounding
new product/service
offerings in the target
market
Low Medium High
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Market Timeliness
Determine the timeliness of entering a specific target market based on the following
criteria.
Market Timeliness Assessment Tool
Low Potential Moderate Potential High Potential
1. Buying mood of
customers
Customers are
not in a buying
mood
Customers are in a
moderate buying
mood
Customers are
in an
aggressive
buying mood
2. Momentum of the market Stable to losing
momentum
Slowly gaining
momentum
Rapidly gaining
momentum
3. Need for a new firm in the
market with your offerings
or geographic location
Low Moderate High
4. Extent to which business
and environmental trends
are moving in favor of the
target market
Low Medium High
5. Recent or planned
entrance of large firms
into the market
Large firms
entering the
market
Rumors that large
firms may be
entering the market
No larger firms
entered the
market or are
rumored to be
entering the
market