A segment is unattractive when there are actual or potential ________ for the product.
A) contenders
B) competitors
C) substitutes
D) unclear demand
E) profit fluctuation

Question

Quizplus · Accepted Answer

A segment becomes unattractive when there are actual or potential substitutes for the product that can easily replace it. This makes it difficult for a business to differentiate its product and remain competitive in the market. Contenders and competitors may actually increase the attractiveness of a segment by promoting healthy competition. Unclear demand and profit fluctuation are issues that can be addressed and managed, but the presence of substitutes is a more fundamental problem.

A Segment Is Unattractive When There Are Actual or Potential