Industry Structure Analysis
3. Pressure from Substitute Products
3. Pressure From Substitute Products
In response to price changes in << Insert Industry Name >>
products, the quantity demanded by customers is << choose one:
Dramatically; Significantly; Moderately; Slightly; Not >> affected
(meaning, the price elasticity of demand is << choose one: very elastic;
moderately elastic; unitary; moderately inelastic; very inelastic >>). The
underlying reasons for this include:
- Relative Price Performance of Substitutes -
- Customer Propensity to Substitute -
- Switching Costs Related to Switching to the Substitute Product (not
just another competitor) -
The most likely substitutes include......
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