Question

Short question, please answer in detailed

What are the criteria for an attractive industry according to Michael Porter?

Answer 1

Porter says te below things about an attarctive industry

The following indicates an attractive industry:

• Threat of entrants is low :: Industries such as capital instensive industry, which have huge fund requirements are places where threat of new entrants is low. Hence new competitors cannnot enter the market easily
• Threat of substitute products is low:: Example: Airplanes. It would take a long time before we could get a subsitute of an airplane
• Bargaining power of buyers is low/weak :Example: If tere is only 1 airplane flying betwenn 2 cities you want to fly,there is no bargaining power
• Bargaining power of suppliers is low/weak: Mature market of goods,for example, food items, commodity selling
• Intensity of rivalry among existing firms is low: Monopoly or oligopoly