How can an industry's key success factors be determined?

Determining an industry's key success factors involves understanding the elements that are essential for a company to compete effectively and gain a competitive advantage within that industry. The correct approach includes analyzing the dominant economic characteristics of the industry itself. This encompasses factors such as market structure, competitive dynamics, regulatory influences, and technological trends that shape the industry's landscape.

Identifying these economic characteristics helps in understanding what drives success within the industry. For instance, in some industries, strong brand loyalty may be critical, while in others, operational efficiency might be more important. By focusing on these underlying economic conditions, businesses can pinpoint the success factors that are most relevant to their strategy and operations.

Market share, profitability, competitor insights, and customer satisfaction are certainly valuable pieces of information, but they serve as outcomes or indicators of success rather than primary determinants of what constitutes success within the industry itself.