Answer to Question #260030 in Management for Paia

Question

Is it appropriate to say that there really are no unattractive industries? if yes what implications does this statement have for the ideas presented? If no describe an industry that has no opportunity?

Answer 1

It is appropriate to say that there really are no unattractive industries. This is because an unattractive industry is one which does not offer the potential for profitability. If a company uses the five forces Porter created and concludes that the competitive forces in the industry are too strong or unfavorable, then that company may choose not to enter that industry or market. There are also opportunities even in unattractive industries, as the Southwest Airlines example points out. In such industries, an analysis of environmental threats would help firms use the S-C-P model to their advantage by understanding the industry’s structure that would identify strategic choices available to them. Even though we can say that there are no unattractive industries, we can still benefit.