Industry and Market Market driven; identified recurring Market: Need 7 Unfocused; onetime revenue revenue niche Customers 8 Loyal to other or unreachable Reachable; purchase orders User benefits 10 Three years plus payback Less than one year payback Value added 4 Low; minimal impact on market High; advance payments Product life 10 Perishable Durable High concentrated or mature or Imperfect, fragmented competition or Market structure 3 declining industry emerging industry Unknown, less than $20 million or Market size 2 $100 + million to $1 billion sales potential multibillion sales Growth rate 9 Contracting or less than 10% Growth at 30 to 50% or more Market capacity 6 Under-capacity At or near full capacity Market share attainable 8 Less than 5% 20% or more; leader (Year 5) Cost structure 7 Declining cost Low-cost provider; cost advantages Economics Profits after tax 6 Less than 15%; fragile 10% to 15% or more; durable ROI potential 9 Less than 15% to 20%; low value 25% or more; high value Capital Requirements 8 Very high; unfundable Low to moderate; fundable Internal rate of return 4 Less than 15% per year 25% or more per year potential Free cash flow 7 Less than 10% of sales Favorable; sustainable; 20-30 + % of sales characteristics Sales growth 9 Less than 10% Moderate to high (15 +% to 20 +%) Asset intensit 6 High/sales $ Low/sales $