1. Define the industry clearly. Do the actors in the industry face the same buyers, suppliers, entry barriers and substitutes?

• Vertical scope: What stages of the industry value chain/

system?

• Product or service scope: What products or services?

Which ones are actually parts of other, separate industries?

What segments?

• Geographic scope: local, national, regional or global competition?

Emily should consider that many diverse businesses serve coffee.

They include not only local cafés and coffee shop chains, but fast food chains, kiosks and restaurants. The definition also depends on whether Emily intends to start in an urban or rural area. Emily wants to start a coffee shop and perhaps even try to grow the business into several outlets. She needs to consider the following steps and questions: