The concept of the threat from substitutes in Porter's ﬁve forces model can be likened to the assumption of _____.
A) homogeneous products in perfect competition
B) a large number of buyers and sellers in perfect competition
C) product differentiation in monopolistic competition
D) collusion among competitors in an oligopoly

Question

Quizplus · Accepted Answer

The threat from substitutes in Porter's five forces model is similar to the assumption of homogeneous products in perfect competition, where products are easily substitutable and consumers can switch without cost.

The Concept of the Threat from Substitutes in Porter's ﬁVe