According to Porter's five forces model,established companies face stronger threats from substitutes if the substitute's ________.
A) price is lower
B) benefits are different
C) switching cost is higher
D) functions are different

Question

Quizplus · Accepted Answer

According to Porter's five forces model, established companies face stronger threats from substitutes if the substitute's price is lower. If the substitute is cheaper, customers may switch to it instead of the established company's product or service.

According to Porter's Five Forces Model,established Companies Face Stronger Threats