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Five forces model
Assessing industry attractiveness using the fives forces model
Competitive force | Threat to industry profitability low | Threat to industry profitability Medium | Threat to industry profitability High |
Threat of substitutes | |||
Threat of entrants | |||
Rivalry among existing firms | |||
Bargaining power of suppliers | |||
Bargaining power of buyers |
Instructions:
Step 1: Select in industry.
Step 2: Determine the level of threat to industry profitability for each of the forces (low, medium or high).
Step 3: Use the table to develop an overall feel for the attractiveness of the industry.
Step 4: Use the table to identify the threats that are most often relevant to industry profitability