Your boss, David Ferrell, has asked you to analyze the soft drink industry using Porter's Five Forces Model. Which of the following represents a substitute product in the soft drink industry?
A) Pepsi requires stores that carry Pepsi products to commit to minimum orders of 1,000 cases.
B) Walmart negotiates a lower cost per bottle from Coke in exchange for premium shelf space in every Walmart store.
C) Zevia Natural Diet Soda begins selling directly over the Internet.
D) Vitamin water, fruit juice, and coffee are all beverage options available to consumers.

Question

Quizplus · Accepted Answer

Substitute products in the context of Porter's Five Forces Model refer to products in other industries that a consumer might use in place of the industry's product. Vitamin water, fruit juice, and coffee are alternatives to soft drinks, making them substitute products.

Your Boss, David Ferrell, Has Asked You to Analyze the Soft