Key success factors (KSF) are areas of critical performance necessary for success in a specific industry. A firm cannot expect to be competitive in its industry without an understanding of the industry’s key success factors. Key success factors are a function of both customer needs and competitive pressures. KSFs are typically identified by completing a list in response to two questions:
- What do customers in my industry want?
- How do successful firms survive the industry’s competitive pressures?
|
Grocery Store KSF |
|
|---|---|
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Customer |
Competition |
|
Cleanliness |
Bargaining power over suppliers |
|
Freshness |
Number of local competitors |
|
Selection, including take-out |
Location relative to competitors |
|
Competitive prices |
|
|
Location & parking |
|
|
Service & pleasant experience |
|
The entrepreneur must be aware of the key success factors (KSF) in his/her industry. Resources should be directed to activities that increase competitiveness on KSF and not wasted on activities that are not critical to KSFs.
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