Donna Tuche-DeWyre is interested in starting an online electronics retail store. Her online store would sell consumer electronics (TVs, gaming systems, laptops, monitors, speakers) and specialty items used in creating a smart home for wireless control of devices. Donna has been in contact with several of the leading consumer electronics manufacturers, and found she can get 18% off full price and purchase straight from the manufacturer if she agrees to order at least $100,000 of merchandise from that manufacturer (such as Samsung, Sony, etc.) in a year. She doesn't have to order $100k of merchandise at once - she would sign an agreement to buy at least $100,000 of merchandise during the year (If her order falls short, the price reverts to the full price plus 5%).

Donna's strategy is to order only televisions and gaming systems in this way. By doing this, she can offer really low prices on items that will attract traffic to her website, while handling other customer orders through an arrangement of transmitting the orders to a third party for fulfillment and paying the other party 10%. In other words, if an order comes in for an HP laptop, Donna forwards the order to the third party, who ships directly to the customer with a label featuring Donna's company's name, then the third party invoices Donna at 90% of the sale price. Donna focuses on selling gaming systems and TVs directly at the lowest price possible, since many customers know exactly what they want and are searching for the best possible price on these items.

Use the Five Forces Model to assess the attractiveness of the consumer electronics model in which Donna Tuche-DeWyre is wanting to compete by looking at each of the five forces. Is this an attractive industry in which to compete? Justify your answer. (24 points)