An industry whose products can be easily substituted faces more threats from other firms currently not in the same industry.

Question

Quizplus · Accepted Answer

If a product can be easily substituted, consumers have many other options available to them, and this gives other firms that offer similar products a chance to compete for the same customers. Therefore, the industry is more vulnerable to new entrants and the threat of substitutes.

An Industry Whose Products Can Be Easily Substituted Faces More