Industry Understanding - Industry Status - Industry Structure

In the previous posts, we learned that industry conditions frame the knowledge and demand factors. Industry status addresses industry lifecycle and structure:

• Emphasizes growth opportunities
• Explores industry evolution
• Provides insights into an industry’s timeliness for new entrepreneurial entrant

Industry Structure

Industry structure refers to the nature of barriers to entry and competitive dynamics in the industry.

• Capital Intensity: Amount of money required to enter and compete in the industry
• Advertising Intensity: Addresses the importance of advertising and branding to the success of competitions in a specific industry
• Firm concentration: Concentration refers to number of competitors in the industry 
• Average company size: Size is about level of resources of competitors - money, employees etc.

An industry with a small number of small sized competitors is good for new ventures. Good to compete with small competitors than with many large competitors.

This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).