Question

If there is really no such thing as an unattractive industry, what implications does this have for applicability of environmental threat analysis?

Answer 1

As indicated above, there are opportunities even in unattractive industries, as the Southwest Airlines example points out. In such industries, an analysis of environmental threats would help firms use the S-C-P model to their advantage by understanding the industry’s structure that would identify strategic choices available to them. Even though we can say that there are no unattractive industries, we can still benefit from the environmental threat analysis. In such cases, the firms would use from the analysis the S-C-P mod their advantage. The firms could identify available strategic choices, by understanding the industry's structure