when a company identifies an attractive industry that offers a higher-than-normal profit potential, it is a

When a company identifies an attractive industry that offers a higher-than- normal profit potential, this is referred to as an "attractive industry." According to Michael Porter's framework, an attractive industry is one where the potential for profitability is high. This attractiveness is assessed by examining competitive forces such as the threat of new entrants, bargaining power of suppliers and buyers, threat of substitute products, and the intensity of rivalry among existing competitors (Porter's Five Forces). An attractive industry typically has low threats and weak bargaining power from buyers and suppliers, low intensity of rivalry, and few substitutes, which allows companies in that industry to enjoy higher margins and profit potential.