Final answer:
The computer industry's attractiveness is influenced by the threats of new entrants and the power of buyers.
Step-by-step explanation:
The computer industry can be analyzed based on the threats of new entrants and the power of buyers. If new firms find it difficult to enter the industry due to high barriers to entry, then the industry is considered less attractive. Similarly, if the power of buyers is high, meaning buyers have the ability to negotiate lower prices or switch to alternative products, then the industry is considered less attractive. However, if the industry has low barriers to entry and buyers have limited power, then the industry is more attractive.
For example, the computer industry has high barriers to entry due to the need for significant capital investment, research and development costs, and strong economies of scale. This makes it difficult for new firms to enter the industry, which reduces the threat of new entrants. Additionally, buyers in the computer industry have significant power due to the availability of alternative products and the ability to negotiate discounts from suppliers. This reduces the overall attractiveness of the industry.