Is The Industry Attractive And What Are Its Prospects For Above-Average Profitability?
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Title: Is The Industry Attractive And What Are Its Prospects For Above-Average Profitability?

Essay Details:

Subject: Business
Author: Terry M
Date: November 11, 2012
Level: University
Grade: A
Length: 2 / 544

Essay text:

However, it is a mistake to think of industries as being attractive or unattractive to all industry participants and all potential entrants. Attractiveness is relative, not absolute, and conclusions one way or the other are in the eye of the beholder— industry attractiveness always has to be appraised from the standpoint of a particular company. Industry environments unattractive to weak competitors may be attractive to strong competitors. Despite the obvious problems of the cigarette industry, for example, Philip Morris has managed to grow market share and maintain reasonable profitability. Industries attractive to insiders, like soft drinks, may be unattractive to outsiders (be-cause of high entry barriers and the global competitive capabilities of Coca-Cola and PepsiCo)...

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