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Economic Attributes Framework

 
  • Demand
  • Supply
  • Manufacturing
  • Marketing
  • Investing & Financing
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    Demand

     
  • Are customers highly price-sensitive or relatively insensitive?
  • Is demand growing rapidly or is the industry relatively mature?
  • Does demand move with the economic cycle or is it insensitive to it?
  • Does demand vary with the seasons or is it relatively stable throughout the year?
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    Supply

     
  • Are suppliers offering similar or unique products?
  • Are there high barriers to entry?
  • Are there high barriers to exit, such as environment cleanup costs?
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    Manufacturing

     
  • Is the manufacturing process capital-intensive or labor-intensive ... or a combination of the two?
  • Is the manufacturing process complex with low tolerance for error, or relatively simple with ranges of products that are of acceptable quality?
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    Marketing

     
  • Is the product promoted to other businesses or marketed directly to consumers?
  • Does steady demand pull products through distribution channels, or must firms continually create demand?
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    Investing & Financing

     
  • Are the assets of firms in the industry relatively short-term or long-term?
  • Is there relatively little risk or high risk in the assets of firms in the industry?
  • Is the industry relatively profitable and mature, generating enough cash flows or growing rapidly and in need of external financing?