A Model for Industry Attractiveness with Two Case Analyses

Abstract

This paper highlights the need for evaluating industry attractiveness in the context of strategic planning. In this process the requirement of a measure for the degree of competition has been pointed out and a measure based on entropy has been introduced. Based on that entropy measure of degree of competition, a multiplicative model for describing industry attractiveness has been suggested. Two case studies, one on the soap market and the other on the cigarette market, have been made for demonstrating the merit of the proposed model.