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Understanding Markets at the Micro Level. Attractive micro markets:

- There's a clearly identified source of customer pain, for some clearly identifiable set of target customers.

- The offering provides customer benefits that other solutions do not.

- The target segment is likely to grow

- There are other segments for which the currently targeted segment may provide a springboard to entry.

Understanding Industries at the Micro Level

Opportunities are attractive at the micro level on the industry side when:

It possesses something proprietary that other companies cannot easily duplicate or imitate.

The business has or can develop superior organizational processes, capabilities, or resources that others would find it difficult to imitate or duplicate.

The company's business model is economically viable.

Rivalry among existing competitors

Profitability decreases as rivalry increases.

The greater the threat of new entrants, the less will be an industry's attractiveness. This is good news for established firms.