According to Michael Porter, one of the major forces influencing competition in an industry is the threat of ________.
A) Giffen goods
B) independent goods
C) Veblen goods
D) substitute goods

Question

Quizplus · Accepted Answer

Michael Porter identified five major forces that influence competition in an industry, and one of them is the threat of substitute goods. Substitute goods are products or services that can be used as alternatives to a company's offerings. The existence of close substitutes can limit the price that firms in the industry can charge and affect their market share. Therefore, the threat of substitute goods is an important factor that companies need to consider when formulating their competitive strategy. Giffen goods, independent goods, and Veblen goods are not related to Porter's five forces model.

According to Michael Porter, One of the Major Forces Influencing