When evaluating whether an industry's environment presents a company with an above-average profitability and an attractive business opportunity, it primarily involves
A)determining the industry's outlook for future profitability.
B)determining which firms in the industry have a competitive advantage and how they got their advantage.
C)determining the overall strength of the five competitive forces.
D)constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group to determine the overall attractiveness of all the strategic groups.
E)using value chain analysis to determine the relative cost positions of rival firms and to learn who the industry's low-cost producer is.

Question

Quizplus · Accepted Answer

The primary focus when evaluating an industry's environment for profitability and attractiveness is to determine the industry's outlook for future profitability. This involves assessing market trends, demand, competition, and other factors that influence the industry's potential to generate above-average returns.

When Evaluating Whether an Industry's Environment Presents a Company with an Above-Average