• Determinants of Industry Attractiveness
– Degree of Rivalry among Competitors
• Strong industry rivalry makes industry unattractive.
– Threat of New Entrants
• Low entry barriers are unattractive to industry incumbents.
– Bargaining Power of Suppliers
• Industries with few and specialized suppliers are unattractive.
– Bargaining Power of Buyers
• Large customers with discretionary purchasing characteristics can
make an industry unattractive.
– Threat of Substitute Products or Services
• Substitutes that offer buyers options to industry products and
services make an industry unattractive.