1. How to define its industry?
A：There are 4 approaches to define Segway’s industry. Descriptions are as follow： * Input/Output based
The primary tool used within this approach is the SIC code. Four digit SIC codes are the common method and widely used and understood. SIC codes provide sub-classifications up to 7 digits. * NAICS Codes for Segway： NAICS Codes | Name | Classification Level | 31-33 | Manufacturing | Sector | 335 | Electrical Equipment, Appliance, and Component Manufacturing | Subsector | 3353 | Electrical Equipment Manufacturing | Industry Group | 33531 | Electrical Equipment Manufacturing | Industry | 335312 | Motor and Generator Manufacturing | U.S. Detail Industry | * Strengths： provides an inexpensive, accessible and widely used pool of comparable data. * Limitations：
SIC codes focus on the primary activity of organization, it becomes difficult to determine the classification of multi-product organizations. Defining one industry by only primary activity may lead to an incomplete definition. * Customer/Market based
Using “Strategic Market Segmentation”, industry participants are defined as those that serve the same market segment. This segment is defined by using the parameters of end-use, geographic location, product technology, customer size and common buying factors. * Strengths：
This closeness between customers & business may provide organizations a consistency with changes in customer trends. * Limitations：
Building a better mousetrap is only as good as long as everyone is trying to build a better mousetrap. If a new entrant to the industry changes the basis on which the customer’s needs are met, any advantage can be quickly eroded. * Organizational based
This approach determines industry participants based on common core competencies. The core competence brings to the company’s primary activities and dealings with its internal and external environment. * Strengths：
It provides an excellent understanding of an organization’s ability to compete within your customer / market space, and insight into how the organization is likely to respond to changes within its environment. * Limitations：
It requires considerable resources, accessibility to information and skill in developing an accurate analysis. The cost and capabilities required to effectively use this tool may put it out of reach for some organizations.

* Strategic positioning based
The tool used under this approach is “Strategic Groups.” First step is analyzing the industry structure by Five Force Industry Analysis & identify all major competitors. Second step is choosing key variables for defining and mapping the strategic groups. * Strengths：
These variables using in this approach are both determinants and results of the organization’s activities. Besides, the analysis isn’t constrained by geographic, product or process definitions. * Limitations：
The judgment factor in using this tool is very high. Also, the level of information and resources required to undertake this type of analysis may not be readily available to some organizations