Question

The _______ is the idea that products or services available from outside the given industry will come close to meeting the needs of current customers.

Multiple choice question.
power of buyers
threat of new entrants
rivalry of existing competitors
threat of substitutes

Answer 1

The threat of substitutes is the idea that products or services available from outside the given industry can meet the needs of current customers.

Step-by-step explanation:

The idea described in the question is the threat of substitutes. In competitive markets, the threat of substitutes refers to the possibility that products or services from outside the industry can satisfy the same customer needs. This threat can limit the market power of existing firms and make it easier for new entrants to compete. For example, if a fast food restaurant faces the threat of substitutes like food delivery services or meal kit subscriptions, it may need to differentiate its offerings or improve its value proposition to retain customers.