Michael Porter's "Attractiveness Test" Means That a Firm Considering Diversifying

question 36

Multiple Choice

Michael Porter's "attractiveness test" means that a firm considering diversifying into another industry should

• A)see that the barriers to entry to that industry are low.
• B)be able to see a way to make superior profits in that industry.
• C)also consider how unattractive their existing industry is, by comparison.
• D)see that some firms in that industry have left, leaving space for newcomers.

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