Evaluating Industry Attractiveness

Question

Explain the way to evaluate Industry Attractiveness.

Answer 1

Evaluating Industry Attractiveness:

There are two problems to using this technique of evaluating industry attractiveness:

i. Deciding on the proper weights for the industry attractiveness measures.

ii. Getting consistent data for use in assigning exact and objective ratings.

Nonetheless, industry attractiveness scores are a sensibly consistent technique for ranking a diversified company’s industries from most to slightest attractive – quantitative ratings tell a important story about just how and why some of the industries a organization has diversified into are more attractive than others.