Dotmar Engineering and many other firms have the ability to replace original metal parts in many manufacturing operations with high strength and/or high thermal capacity plastic parts at a much lower cost.This would illustrate the power of _______ in Porter's Five-Forces model.
A)Buyer
B)Substitutes
C)New entrants
D)Competitive rival
E)Supplier

Question

Quizplus · Accepted Answer

The ability to replace original metal parts with plastic parts at a lower cost illustrates the power of substitutes in Porter's Five-Forces model. The availability of substitutes can affect industry competition by limiting the pricing power of existing firms in the industry, and by increasing the pressure on firms to improve their products and services.

Dotmar Engineering and Many Other Firms Have the Ability to Replace