Industry Attractiveness is the (relative) future profit potential of a market. In general it can be determined using the Five-Forces Framework as described by Michael Porter in his books Competitive Strategy and Competitive Advantage.
How can you evaluate the attractiveness of an industry?
In order to determine the attractiveness of an industry, it is important to work with business brokers to analyze the 5 forces of the industry, also known as Porter’s 5 forces: buyer power, supplier power, threat from substitutes, threat from competitors, and the threat of new entrants.
Why is industry attractiveness?
Besides potential, growth, and profitability, the nature of competition in the industry also determines industry attractiveness. So the firm has to assess the nature of competition I the industry as well. … Forces shaping competition and industry barriers are the two main issues here.
What makes a business attractive?
They include having a good profit track record, solid financial information, an actionable plan for growth, defensibility of niche, brand, quality of management, and intellectual property.
What does attractive mean in business?
Interesting because of the likelihood of being advantageous or profitable: an attractive business deal.
Which of the following are characteristics of attractive industries?
………………………………….is the place where the required facilities and factoryaccommodation are provided by the government to the entrepreneurs to establish their industries there.
|Q.||All of the following are characteristics of attractive industries EXCEPT:|
|C.||the industry is crowd|
|Answer» c. the industry is crowd|
What are the characteristics of an attractive industry from an entrepreneur’s point of view?
The industry should contain markets that are underserved or ripe for innovation. The entrepreneur can thus undertake to serve the residual market or invest in research and development for growth. Growth forecasts are also dependent on anticipated environmental trends.