What evaluates industry attractiveness?
Understand the Problem
The question is asking about the factors or tools used to assess how appealing an industry is for investment or participation, likely focusing on competitive dynamics, market potential, and profitability.
Answer
Porter's Five Forces Model
The final answer is Porter's Five Forces Model.
Answer for screen readers
The final answer is Porter's Five Forces Model.
More Information
Porter's Five Forces Model is widely used to evaluate the attractiveness of an industry and its competitive intensity, by analyzing five key forces: buyer power, supplier power, threat of substitutes, threat of new entrants, and competitive rivalry.
Tips
A common mistake is confusing Porter's Five Forces with a SWOT analysis, which focuses more on internal factors (strengths and weaknesses) instead of industry-level forces.
Sources
- Determining Industry Attractiveness | Beacon Advisors - beaconadvisors.com
- Assessing Market & Industry Attractiveness | Study.com - study.com
- What evaluates industry attractiveness? | Chegg - chegg.com
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