Question

If the barriers to entry for an industry are low, then the industry’s attractiveness (as per Porter’s framework) is –

A) Not impacted

B) High

C) Low

D) None of the above
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Answer 1

Answer:

The stronger competitive forces in the industry are the less profitable it is. An industry with low barriers to enter, having few buyers and suppliers but many substitute products and competitors will be seen as very competitive and thus, not so attractive due to its low profitability

Explanation: