Asked by Lourdes Orellana on Jun 29, 2024
Verified
An unattractive industry is one in which there are high barriers to entry.
Barriers To Entry
Obstacles or hurdles that make it difficult for new competitors to enter a market, protecting existing companies from new challengers.
- Acquire knowledge of the components of the Porter's Five Forces framework and the determinants for identifying industries as attractive or not.
Verified Answer
DG
Dahryl GrantJul 06, 2024
Final Answer :
False
Explanation :
An unattractive industry is typically characterized by factors such as high competition, low profitability, and high barriers to exit, rather than just high barriers to entry. High barriers to entry can actually make an industry more attractive to those already within it, as it limits competition.
Learning Objectives
- Acquire knowledge of the components of the Porter's Five Forces framework and the determinants for identifying industries as attractive or not.