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Options
- A
Few substitutes
- B
Weak suppliers’ bargaining power
- C
High barriers to entry
-
All of the above
Correct answer
Why this is the answer
A highly attractive industry typically has high potential profitability and limited competitive threats. Few substitutes preserve pricing power by reducing customer switching. Weak suppliers reduce input costs, supporting margins. High barriers to entry prevent new competitors from easily entering, protecting market share. Collectively, these factors make an industry appealing for investors.
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