Final answer:
In considering diversification into the electric automobile industry, the appliance manufacturing company should focus on economies of scale, competition levels, and geographical factors as three of the seven measures to calculate industry attractiveness.
Step-by-step explanation:
When an appliance manufacturing company considers diversifying into the electric automobile industry, it's crucial to evaluate industry attractiveness carefully. Three of the seven measures that can help in this evaluation are:
Economies of Scale: Given that automobile manufacturing relies significantly on economies of scale, it's important to consider whether the new industry will allow for a reduction in costs as production scales up. For an appliance manufacturer, assessing potential cost advantages due to larger-scale production would be pertinent.Competition Levels: Since globalization has expanded market boundaries, competition is now global. The appliance manufacturing company needs to consider how well they can compete with established players like Toyota, Honda, and Volkswagen, and account for the possibly lower concentration ratios and HHIs in the global market.Geographical Factors: Historically, regions like Detroit benefited from geographical advantages in the auto industry. The appliance manufacturing company should analyze whether they have or can develop geographical or human capital advantages to succeed in automobile manufacturing.
Choosing these measures to task and explain, with specifies, why they were chosen helps ensure the necessary attention is directed towards critical aspects that determine long-term success in the highly competitive and scale-driven electric automobile industry.