Key Success Factors (CFEs) are the elements that ensure a company’s success, in other words, anything that contributes to higher profits. CFIs include: strategy; properties of goods, on the basis of which consumers choose a brand or supplier; resources and opportunities that ensure the company’s victory in the competition; professional experience, productivity, actions to achieve a sustainable competitive advantage. All companies in the industry should pay close attention to KFU: after all, the financial future and competitiveness of the company depend on them. For example, KFU in brewing: full utilization of production capacities (to minimize production costs), an extensive network of wholesale distributors (to provide access to as many retail outlets as possible), well-thought-out advertising (to convince consumers to drink this particular type of beer and thus ensure a high level of sales through the wholesale and retail trade network). In the production of clothing, KFU includes the design and color of models, low production costs (allowing you to set attractive prices and make a profit). In the production of tin and aluminum containers, the role of the KFU is played by the location of the plants: since the cost of transporting empty cans is quite high, the factories for their production should be located near consumers (the share of the local market in this case is more important than the national one).
Identifying the key factors of the company’s success, taking into account the prevailing and predictable conditions for the development of the industry and competition in it, is the most important analytical task. To do this, you need to know your industry well enough to determine what is important and what is secondary in the competition; clearly understand what types of resources are required for this. Incorrect assessment of certain success factors leads to the choice of an erroneous strategy and goals. Conversely, the correct definition of KFU in its industry allows you to achieve a significant advantage over competitors and win a better position in the market.