The degree to which products of one industry can satisfy the same demand as those of another is called ________.
A) threat of new entrants
B) supplier power
C) complementors
D) threat of substitutes

Question

Quizplus · Accepted Answer

The degree to which products of one industry can satisfy the same demand as those of another is referred to as the threat of substitutes. It is one of the five forces in Porter's Five Forces framework that determines the competition and profitability of an industry. The higher the degree of substitutability, the greater the threat of substitutes, which leads to higher competition and lower profitability.

The Degree to Which Products of One Industry Can Satisfy