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Which one of the following is NOT generally considered a key factor in assessing industry attractiveness? Select one: a. Buyer power b. Threat of substitutes c. Threat of regulation

Respuesta :

Answer:

c. Threat of regulation

Explanation:

Michael Porter's five forces model states factors for assessing an industry's attractiveness. Following are the five forces as per porter:

  1. Buyer power: Refers to negotiation power of buyers in a industry
  2. Supplier Power: Refers to supplier's power to charge a price for inputs.
  3. Threat of substitutes: Refers to competitors already making homogeneous or similar products.
  4. Degree of Rivalry i.e the intensity of competition in an industry
  5. Threat of new entrants: Threat of new firms entering the industry and gaining a market share.

Thus, Threat of regulation is not considered amongst 5 forces that are used to assess industry attractiveness.

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