Question

In Porter's Five Competitive Forces model, "competition from substitute goods or services" refers to...

1) substitute products that come from outside the industry.
2) substitute products that come from domestic competitors in the same industry.
3) substitute products that come from foreign competitors in the same industry.
4) competition from producers of substitutes who outsource their production.

Answer 1

Competition from substitute goods or services refers to substitute products that come from outside the industry.

Step-by-step explanation:

In Porter's Five Competitive Forces model, "competition from substitute goods or services" refers to substitute products that come from outside the industry. This means that the competition is coming from products or services that serve the same purpose as the original product, but are produced by companies outside of the industry. These substitute products offer consumers an alternative choice to the original product.