According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?
A)a used car dealership in New York
B)a convenience store that sells retail products
C)a firm that sells the only drug for a disease
D)a corner latte shop in Atlanta

Question

Quizplus · Accepted Answer

The firm that sells the only drug for a disease would be least affected by the threat of substitutes as there are no substitutes available for the drug, and customers have no option but to buy from this firm. This gives the firm a significant amount of power and reduces the impact of the threat of substitutes. The other options, such as a used car dealership, a convenience store, or a corner latte shop, have several substitute products available, and therefore, the threat of substitutes can significantly impact their business.

According to Porter's Five Forces Model, Which of the Following