product management chapter 5: category attractiveness analysis
TRANSCRIPT
PRODUCT MANAGEMENTCHAPTER 5: Category Attractiveness Analysis
LEARNING OBJECTIVES:
After studying this chapter, you should be able to:
1. Understand the basic concept of category analysis
2. Understand what are the aggregate market factors
3. Identify the category factors4. Classify the environmental factors
CHAPTER OUTLINE
1. Overview of the category attractiveness analysis
2. Aggregate market factors3. Category factors4. Environmental factors
Overview
Product managers must ask whether category of interest is sufficiently attractive
Often characterized as ‘industry’ or ‘market’ analysis
Characteristics of product category rarely point to the same direction
Aggregate Market Factors
Category size Market growth Product life cycle Sales cyclicity Seasonality Profits
Category Factors
Based on Porter’s five forces:1. Threat of new entrants2. Bargaining power of buyers3. Bargaining power of suppliers4. Amount of intra-category rivalry5. Threat of substitute products
Environmental Analysis
Technological factors Political factors Economic factors Regulatory factors Social factors
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