According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?
A)a used car dealership in New York
B)a convenience store that sells retail products
C)a firm that sells the only drug for a disease
D)corner latte shops in Atlanta

Question

Quizplus · Accepted Answer

A firm that sells the only drug for a disease would be least affected by the threat of substitutes, as there are no other alternatives available for customers. This gives the firm significant pricing power and bargaining leverage. The other three options have more substitutes available and, therefore, would be more affected by the threat of substitutes.

According to Porter's Five Forces Model, Which of the Following