9 Factors that Determine the Prospects and Financial Attractiveness of an Industry are:
A company would enter any industry if it has a vision that the industry would be prospective and financially attractive. The factors that determine prospects and financial attractiveness of an industry area follow:
1. Whether competition currently permits adequate profitability?
2. Whether competitive forces will become stronger or weaker?
3. The industry’s growth potential.
4. The degrees of risk and uncertainty in the industry’s future.
5. The company’s competitive position in the industry and whether its position is likely to grow stronger or weaker.
6. Whether the company’ can take benefit of weaknesses of the rivals?
7. Whether the company can defend against factors that make industry unattractive?
8. The severity of problems confronting the industry as a whole.
9. Whether participation in this industry adds to the firm’s ability to be successful in other industries in which it may have business interests?