Which of the following is TRUE if the threat from a substitute is strong?
A) Customers are likely to switch to competitors' products.
B) Competitors' products are of a lower quality.
C) Competitors are yet to overcome the entry barriers.
D) Prices of competitors' products are higher.

Question

Quizplus · Accepted Answer

If the threat from a substitute is strong, customers are likely to switch to competitors' products, making it a significant concern for the company. Competitors' products may or may not be of lower quality, and their prices may be higher or lower depending on the market conditions. The entry barriers also may or may not have been overcome already by competitors.

Which of the Following Is TRUE If the Threat from a Substitute