To determine how strong the threat of substitutes will be entails:
A) identifying the relative price/performance relationship of the substitutes,the switching costs and the overall buyer demand for the substitute.
B) identifying the attractiveness of other industries.
C) measuring Coke as a substitute for Pepsi and applying dynamic simulation modeling techniques.
D) adopting a substitute product concentration factor to the buyer volume.
E) All of these.

Question

Quizplus · Accepted Answer

Determining the strength of threat substitutes requires analyzing the relative price and performance of the substitutes, switching costs, and overall buyer demand for the substitute. Options B, C, and D are not relevant to determining the strength of substitutes.

To Determine How Strong the Threat of Substitutes Will Be