Evaluating whether an industry presents a sufficiently attractive business opportunity usually does not involve a consideration of which of the following factors?
A) The industry's growth potential, whether competitive pressures will likely grow stronger or weaker, and whether the industry's future profit prospects are above average, average, or below average
B) An assessment of the degrees of business risk and uncertainty in the industry's future
C) Whether the industry's future profitability will be favorably or unfavorably affected by the prevailing driving forces
D) The severity of the problems confronting the industry as a whole
E) Whether the industry's product is strongly or weakly differentiated

Question

Quizplus · Accepted Answer

The differentiation of the industry's product may be a consideration when analyzing a company within the industry, but it is not directly related to evaluating the overall attractiveness of the industry as a whole. Options A, B, C, and D are all relevant factors to consider when evaluating the attractiveness of an industry.

Evaluating Whether an Industry Presents a Sufficiently Attractive Business Opportunity