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 more likely to switch to competitors' products that serve as a substitute. This can result in a loss of market share for the original product. Therefore, choice A is the correct option.

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