In Porter's five forces model, what is meant by the term 'substitute'?

CS Executive · Financial and Strategic Management · PYQS · June 2024
In Porter's five forces model, what is meant by the term 'substitute'?
(A) A substitute refers to an alternative manufacturing process
(B) A substitute is an alternative product or service that performs the same function for the consumer
(C) A substitute is a rival firm offering the same products
(D) A substitute is something else consumers would rather spend their money on

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Strategic Management

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