The living environment of modern enterprises is in a rapid change. The enterprise has to adjust its strategy in time and make industry selection dynamically to set up sustained competitive advantage. To make industry selection, enterprise should depend on its enterprise competence and enter right industry timely based on judging industry attractiveness accurately. The paper analyzes factors which may have influences on industry attractiveness and enterprise competence, and establishes index system of quantitative evaluation. Consequently, the paper builds evaluation system of industry selection, including evaluation index system based on analyzing factors of industry attractiveness and enterprise competence and the synthetic integration method of industry selection. Moreover, the paper sets up the industry selection model on the basis of entropy coefficient, which applies qualitative and quantitative analysis and ranks the industry order according to relative data calculation. Finally, the paper analyzes the case of Tianjin Sanyuan Group and presents strategy of industry selection.Shuai Hongpo(Technical Economy and Management)Directed by prof. Li Xiang...
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