(1) whether it s capabilities would increase or diminish if it did grow;
(2) its potential for growth in terms of people, skills, and plant capacity ;
and (3) the degree of growth it could sustain from a financial perspective.
The competitor's quick -response capability - its ability to mount an immediate counteroffensive - must be evaluated. Specific factors to analyze include uncommitted cash reserves, reserve borrowing power. excess plant capacity, and unintroduced new products that could quickly be placed on the shelf.