Tom and his family have developed a successful business selling a liquid spray fertilizer to farmers.The fertilizer consists of rich,organic,composted material.Recently NuBreed Seed,a national seed company,has been marketing a powdered chemical fertilizer to its customers;NuBreed's fertilizer is less expensive than Tom's product.NuBreed's efforts are an example of the ___ in Porter's model for industry analysis.

Question

Quizplus · Accepted Answer

NuBreed Seed's powdered chemical fertilizer is a substitute product to Tom's liquid spray fertilizer, and it is less expensive. This represents a threat to Tom's business, and is an example of the "threats of substitute products and services" in Porter's model for industry analysis.

Tom and His Family Have Developed a Successful Business Selling