Which of the following factors should a company consider when determining if an industry offers good prospects for attractive profits?
A)The industry's growth potential,whether competition appears destined to become stronger or weaker,how the industry's driving forces might affect overall industry profitability,the company's competitive position relative to rivals,and the company's proficiency in performing industry key success factors
B)An assessment of which firms in the industry have the best and worst competitive strategies,whether the number of strategic groups in the industry is increasing or decreasing,and whether economies of scale and experience curve effects are a key success factor
C)Whether there are more than five key success factors and more than five barriers to entry
D)Constructing a strategic group map and assessing the attractiveness of the competitive position of each strategic group
E)Whether the market leaders enjoy competitive advantages and how hard it is to develop a strongly differentiated product

Question

Quizplus · Accepted Answer

A company should consider the industry's growth potential, competition, driving forces, its competitive position, and proficiency in performing key success factors when determining if an industry offers good prospects for attractive profits. Option B, C, D, and E also include some relevant factors to be considered, but they are not as comprehensive as option A.

Which of the Following Factors Should a Company Consider When