(1) Industry attraction, including market size, annual market growth rate, historical profit rate, competition intensity, technical requirements, vulnerability caused by inflation, energy requirements, environmental impact and social, political and legal factors. The ordinate in the matrix diagram represents the industry attraction, which is generally expressed by large, medium and small.
(2) Competitive position, that is, the competitive ability of strategic business units in this industry, including market share, market share growth, product quality, brand reputation, business network, promotion, production capacity, production efficiency, unit cost, raw material supply, research and development achievements and management personnel. The abscissa in the matrix diagram represents the competitive position or competitiveness of strategic business units, which is generally expressed as strong, medium and weak. If the industry is attractive and the strategic business unit of the enterprise has a strong competitive position, obviously this kind of business is the best business.
The top management of the enterprise should score the above two variables respectively (the highest score is 5 points), all factors are weighted, and the weighted average score of each variable is obtained.