Textbook publishers can charge high prices because students enrolled in a class must purchase the specific book that the professor has selected. Used copies are sometimes a lower-cost option, but textbook publishers have cleverly worked to undermine the used textbook market by releasing new editions after very short periods of time. According to Porter what "force" do used books industry represent?
A) Buyers
B) Suppliers
C) Substitutes
D) New Entrants
E) Rivals

Question

Quizplus · Accepted Answer

Used books represent a substitute force in Porter's Five Forces model, as they offer an alternative to buying new textbooks, potentially reducing the demand for new books.

Textbook Publishers Can Charge High Prices Because Students Enrolled in a Class