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24 July, 09:08

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

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  1. 24 July, 09:19
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    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:

    Buyer power: Refers to negotiation power of buyers in a industry Supplier Power: Refers to supplier's power to charge a price for inputs. Threat of substitutes: Refers to competitors already making homogeneous or similar products. Degree of Rivalry i. e the intensity of competition in an industry 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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