According to Michael Porter, there are five determinants of competition. An example of _____ is when the availability limits the prices that can be charged to customers.
A) threat of entry
B) rivalry between existing competitors
C) pressure from substitute products
D) bargaining power of buyers
E) bargaining power of suppliers

Question

Quizplus · Accepted Answer

Pressure from substitute products limits the prices that can be charged to customers because if substitutes are readily available, customers can switch to them, forcing companies to keep prices competitive.

According to Michael Porter, There Are Five Determinants of Competition