Sugar manufacturers have been steadily losing business as a result of increasing use of high-fructose corn syrup in processed foods. However,sugar sales are beginning to increase again in recent months. This example most closely demonstrates which of Porter's Five Forces?
A) Bargaining power of suppliers
B) Bargaining power of consumers
C) Rivalry among competitors
D) Threat of new entrants
E) Threat of new substitutes

Question

Quizplus · Accepted Answer

The increasing sales of sugar despite the availability of a cheaper substitute (high-fructose corn syrup) indicates that consumers are switching back to sugar, which demonstrates the threat of new substitutes. This force is one of Porter's Five Forces, which refers to the threat of alternatives to the products or services being offered.

Sugar Manufacturers Have Been Steadily Losing Business as a Result