Assessments of the long-term attractiveness of each industry represented in a diversified company's lineup of businesses should be based on:

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Quantitative industry attractiveness scores are the most comprehensive way to assess the long-term attractiveness of each industry, as they consider multiple factors that determine industry attractiveness and weight them according to their relative importance. A value chain analysis (A) may be useful for understanding the dynamics within a particular industry, but it does not provide a comprehensive assessment of industry attractiveness. The fact that companies within an industry are making money or losing money (C) is not a reliable indicator of industry attractiveness, as profitability can vary widely even within an attractive industry. The driving forces within an industry (B) may be important to consider, but they do not provide a complete picture of industry attractiveness. Assessing the competitive advantage potential of each industry (E) is also important, but it is only one of many factors that should be considered when evaluating industry attractiveness.

Assessments of the Long-Term Attractiveness of Each Industry Represented in a Diversified