New communication technology can impact seemingly unrelated industries such as the airline industry.This would be an example of a
A) threat of entry.
B) backward integration.
C) threat of substitute products.
D) forward integration.

Question

Quizplus · Accepted Answer

Identifying substitute products involves searching for other products or services that can perform the same function as the industry's offerings. This may lead a manager into businesses seemingly far removed from the industry. For example, the airline industry might not consider video cameras much of a threat. But as digital technology has improved and wireless and other forms of telecommunication have become more efficient, teleconferencing has become a viable substitute for business travel.

New Communication Technology Can Impact Seemingly Unrelated Industries Such as the Airline