Industry Attractiveness Before Entry
Assess whether an adjacent market has structurally attractive economics.
A big market is not automatically an attractive market. The operating idea Porter’s Five Forces asks what shapes profit in an industry: rivalry among incumbents, threat of new entrants, threat of substitutes, buyer power, and supplier power. The mechanism is structural pressure. A market can be large and growing while still being unattractive if buyers have leverage, substitutes are easy, switching costs are low, or suppliers capture the economics. For BD, this prevents “big logo” thinking from overpowering economic reality. The framework is most useful before market entry, partnership strategy, and vertical expansion. It makes you ask who will have…
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