Definition of market attractiveness

measure of the profit possibilities that lie within the structure of a particular industry or market. There are many different factors that contribute to market attractiveness. These include: (1) market factors such as growth rate and size of the market; (2) economic factors such as investment potential and industry saturation or rates of inflation affecting consumers' purchasing power; (3) technological factors such as availability of raw materials; (4) competitive factors including the types of rival business and the bargaining power of suppliers; and (5) environmental factors such as the existing regulatory climate and the degree of social acceptance for a product within a particular market.