Potential industry profitability


Problem: The costs of producing steel declined substantially from building a conventional hot¬-rolled steel mill down to the new mini-mill technology that requires only scrap metal, an electric furnace, and 300 workers rather than iron ore raw materials, enormous blast furnaces, rolling mills, reheating furnaces, and thousands of workers. What effect on the potential industry profitability would Porter's Five Forces framework suggest this new technology has? Why?

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Microeconomics: Potential industry profitability
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