Threat of substitutes
In general, industries are more attractive when the threat of substitutes is low. This means that products or services from other industries can’t easily serve as substitutes for the products or services being made and sold in the local firm‘s industry. For example, there are few if any substitutes for prescription medicines, which is one of the reasons the pharmaceutical industry is so profitable, when people are sick, they typically don’t quibble with the pharmacist about the price of a medicine.
Category: Entrepreneurship & Small Business
Previous: ← Pro forma Financial Statements
Next: Barrier to Entry →
More from this Section
- Closely held corporation
Closely held corporation is a corporation in which the voting stock is held by a small ... - Day-in-the Life Research
Day-in-the life research refers to a form of anthropological research used by companies ... - Prospectus
Prospectus is a document that presents a company’s financial data for several consecutive ... - Grant Deed
Grant Deed is a legally binding contract that transfers ownership of real estate from ... - Private accountant
An accountant working in any position not included in public accounting; may work in management ...