Asked by David Tovar on May 28, 2024
Verified
Threat of substitute products or services and rivalry among existing firms in the industry are the same except that substitute products refers to the internet while rivalry refers to brick-and-mortar stores.
Substitute Products
Products that can be used in place of others to satisfy the same needs or desires, often influencing consumer choices and market competition.
Rivalry Among Firms
A situation where companies compete against each other in the same industry for market share, profits, and customer loyalty.
Brick-and-mortar Stores
Physical retail locations where customers can visit to view and purchase goods in person.
- Comprehend the influence of the web on competitiveness and earnings within various industries.
Verified Answer
BM
Brittney MedinaJun 01, 2024
Final Answer :
False
Explanation :
Threat of substitute products or services and rivalry among existing firms are different components of Porter's Five Forces framework. The distinction does not depend on whether the products are offered via the internet or brick-and-mortar stores; rather, it's about the difference between alternatives from different industries (substitutes) and competition within the same industry (rivalry).
Learning Objectives
- Comprehend the influence of the web on competitiveness and earnings within various industries.