Factors sometimes can appear as red herring – they are visible as trends but don’t impact the underlying structure of the industry
Industry growth rate : it’s a common mistake to think a fast growing industry is always attractive. Fast growth can give suppliers more power and low barriers to entry can flood the arena with new entrants. (personal computer)
Technology and innovation : advantage in technology are not enough to make an industry structurally attractive
Government : analyze how specific government influence affects profitability
Complimentary products and services : car, gas station, insurance