What are the Five Forces in the Model of Industry Attractiveness? Explain each Five Forces Institution Affiliation Date: When entering in an industry or a market there are five different forces in the model of industry attractiveness. The five forces aim at letting the investors know whether an industry is attractive or not and are a good point of performing the industry analysis. They define the influence and the shape profit potential of the selected industry since the attractive industry must offer this profitability. The first force is the threat to new entrants where companies look into the level of the openness of the market to allow new entrants in the same industry (Schermerhorn, 2011). The new entrants in the industry will increase competition and thus reducing the profitability of an organization. However if the industry has to be attractive, the level of threat t ...
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