It will be helpful to check whether in any particular industry we can make above average profit or not.
Here we are assessing the overall attractiveness on the basis of below 5 forces:
1) Buyer Power = Powerful buyer can demand discounted price and extra services
2) Supplier Power = Powerful supplier can demand higher prices for their products
3) Competitive Rivalry = High level of competition can lead to price war and high expenditure on marketing
4) New Entrants = If there is no or very low barrier to entry then new entrant can come easily
5) Substitute = If organization has lots of substitute then they will have to keep the products price low