Factors sometimes can appear as red herrings—they are visible as trends but do not 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 computers) – Technology and Innovation: Advancements in technology are not enough to make an industry structurally attractive – Government: analyze how specific government influence affects profitability. – Complimentary products and services: (cars, gas stations, insurance)