The answer is attractiveness, profitability.
Firms use the five forces model to identify the attractiveness of the industry as measured by its profitability.
What is attractiveness ?
- To establish an industry's attractiveness, engage with business brokers to examine the industry's 5 factors, often known as Porter's 5 forces: buyer power, supplier power, threat from substitutes, danger from rivals, and threat from new entrants.
- the quantity and strength of a company's competitive competitors, possible new market entrants, suppliers, consumers, and replacement goods that have an impact on its profitability. The Five Forces model may be used to influence corporate strategy in order to get a competitive edge.
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