Today I have been...
Reading about the 5th force, the threat of substitutes
Why?
Required reading
So What?
Markets group together firms whose products can be substitutes for each other, from the buyer's p-o-v. Industries do the same from the supplier's p-o-v.
Cars & trucks are part of the auto industry, but not the same market. Whether something is a substitute is a matter of judgement.
Porter points out that the degree to which a substitute poses a thread depends on the price/performance trade-off from the buyer's p-o-v.
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