Lecture Notes: Industry Key Success Factors

Introduction

• Presenter: Mark from Walter's World
• Topic: Understanding industry key success factors (KSFs)
• Definition: Attributes, product features, or service details that differentiate a good company from a great one.

Key Success Factors Overview

• Typically, there are 5-6 KSFs in any industry.
• Essential for any successful company to be competent in these areas.
• Companies focus on 2-3 KSFs due to cost constraints.
  • Example: Apple focuses on design, innovation, and branding, but not as much on battery life or durability.

Determining Industry Key Success Factors

Three Critical Questions:

1. What do customers want?

   • Identify the target market (e.g., general, business, teenage segments in mobile phones).
   • Example: Business phone industry values security, battery life, app compatibility, internet connectivity.

2. How do firms compete?

   • Analyze competition strategies.
   • Example: Soda industry uses distribution networks, local production, and marketing relations.

3. Are there any death bells?

   • Identify critical product attributes that must not fail.
   • Example: A phone with a very short battery life will not sell, regardless of design.
   • Analogy: Restaurants must be health-conscious to avoid negative perceptions.

Evolution of Key Success Factors

• KSFs change over time.
  • Example: Car industry focus on safety from past (Volvo) to current universal safety standards.
• Companies must adapt to evolving KSFs to stay competitive.

Conclusion

• Importance of identifying and adapting to KSFs in your industry.
• Invitation to learn more on their website and follow their social media channels.
• Reminder: Success in business relies on understanding and leveraging KSFs.