Industry rivals tend to experience weak competitive pressures from substitute products when
A) the available substitute products are weakly differentiated from one another.
B) the buyers of the industry's products are few in number and they have substantial amounts of leverage with sellers.
C) rival sellers experience strong bargaining power from both suppliers and influential customers.
D) buyers incur high costs in switching to substitutes and substitutes are higher priced relative to the performance they deliver.
E) the producers of substitute products are all pursuing strategies to strongly differentiate their products on the basis of quality and product performance.

Question

Quizplus · Accepted Answer

Weak competitive pressures from substitute products occur when the buyers incur high costs in switching to substitutes and substitutes are higher priced relative to the performance they deliver. In this scenario, consumers are less likely to switch to substitute products, and therefore, the industry rivals experience weak competitive pressures.

Industry Rivals Tend to Experience Weak Competitive Pressures from Substitute