Generally, industries are more attractive when the threat of substitutes is ________.
A) high
B) low
C) neutral (neither high or low)
D) high for manufacturing firms and low for service firms
E) high for service firms and low for manufacturing firms

Question

Quizplus · Accepted Answer

When the threat of substitutes is low, industries are generally more attractive. This is because there are fewer alternatives for consumers, leading to a higher demand for the industry's products or services. This can result in higher profits and a more stable market. In contrast, when the threat of substitutes is high, consumers have more options to choose from, which can lead to decreased demand and lower profits for the industry.

Generally, Industries Are More Attractive When the Threat of Substitutes