Threat of Substitute Products
Consumer Switching Costs. Start creating a list of potential substitutes that you evaluate as a threat in an external analysis. Porter S Five Forces Model Of Competition Analysis Analysis Business Studies Competition As a result businesses may incur high marketing and promotional costs when competing for market share which in turn reduces operating profits. . However from a companys perspective substitute products create a rivalry. Bargaining power of suppliers. 111 The Threat of Substitute products. With this analysis youll be better able to identify and react to any threat of substitutes. If it is high the threat of substitution is low. 111 The Threat of Substitute products. There are also many emergent designs from different companies consistently coming out. In general the more substitute products. For that reason substitutes as they are also known for can limit the profitability of your business and m...