Question

Tom and his family have developed a successful business selling a liquid spray fertilizer to farmers. The fertilizer consists of rich, organic, composted material. Recently NuBreed Seed, a national seed company, has been marketing a powdered chemical fertilizer to its customers; NuBreed's fertilizer is less expensive than Tom's product. NuBreed's efforts are an example of the ___ in Porter's model for industry analysis.

threats of substitute products and services
threats of new ideas
power of the suppliers
competitive rivalry among competitors
buyers' negotiating influence

Answer 1

threats of substitute products and services

Step-by-step explanation:

The Porter's five forces model is used to analyze the competition level which can be faced by the company within an organization or with others in the market .

The five forces are as follows -

1 . Industry rivalry .

2. Bargaining power of supplier .

3. Bargaining power of buyer .

4. Threat of substitutes .

5. Threat from new entrants .

In the case given in the question , the correct answer would be 4. Threat of substitutes .