Question

According to the five forces model, an attractive industry would include all of the following characteristics EXCEPT: a. low threat of substitute products. b. high supplier power. c. low bargaining power of buyers. d. high barriers to entry.

Answer 1

b. high supplier power does not belong to the characteristics of attractive industry according to the five forces model.

Explanation:

There are 4 industrial rivalry. They are

1. Threat of Entry
2. Bargaining power of supplier
3. Threat of substitute
4. Bargaining power of buyers

The above listed determines the level of competition in the industry and its structure.

An attractive industry will yield more profits. It constitutes of all the things mentioned in the question except, for the fact that it need weak supplier bargaining power.

Where as an unattractive industry will yield less profit and it is quite opposite to attractive industrial characteristics.