Question

The steps for identifying the profit pools in an industry include all of the following EXCEPT?

1) defining the boundaries of the pool
2) estimating the overall size of the pool
3) defining the competitors in the pool
4) estimating the size of the value-chain activity in the pool

Answer 1

The steps for identifying the profit pools in an industry include defining boundaries, estimating size, and identifying competitors; however, estimating the size of the value-chain activity is not one of the steps.

Step-by-step explanation:

The steps for identifying the profit pools in an industry include all of the following EXCEPT:

1. Defining the boundaries of the pool
2. Estimating the overall size of the pool
3. Defining the competitors in the pool
4. Estimating the size of the value-chain activity in the pool

Identifying the profit pools involves analyzing the specific segments of an industry where companies generate profit. This is done by defining the boundaries, estimating the size, and identifying the competitors in the pool. However, estimating the size of the value-chain activity is not one of the steps involved in identifying the profit pools.