Asked by James Stupin on Apr 28, 2024
Verified
From the perspective of Porter's five forces model, an unattractive industry is one with less intense competition, few threats from new entrants or substitutes, and low bargaining power among suppliers and buyers.
Porter's Five Forces
A framework for analyzing a company's competitive environment, including threats from new entrants, bargaining power of suppliers and customers, threats from substitute products or services, and competitive rivalry.
Bargaining Power
The ability of a party to exert influence or control over the terms and conditions of negotiations due to its strengths or advantages.
Substitutes
Alternatives or replacements for someone or something, typically used in the context of materials, products, or personnel.
- Understand Porter's Five Forces model and its criteria for attractive and unattractive industries.
Verified Answer
AS
amtoj singhMay 02, 2024
Final Answer :
False
Explanation :
An unattractive industry is one with higher intensity of competition, greater threats from new entrants or substitutes, and high bargaining power among suppliers and buyers. A lack of these factors may indicate a more attractive industry.
Learning Objectives
- Understand Porter's Five Forces model and its criteria for attractive and unattractive industries.