The threat of potential substitutes is high when the substitutes:
A)offer greater value for their price than the original product.
B)face high barriers to enter the market.
C)have higher production costs than the original product.
D)cause customers to incur high switching costs.

Question

Quizplus · Accepted Answer

Potential substitutes pose a high threat when they offer greater value than the original product for the same or lower price, making it more attractive to customers to switch.

The Threat of Potential Substitutes Is High When the Substitutes