Question

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

A. buyers' negotiating influence
B. threats of substitute products and services
C. power of the suppliers
D. rivalry among competitors
E. threats of new ideas

Answer 1

Threat of substitute product

Step-by-step explanation:

Threat of substitute product is one of the Porter's model that explains the impact of alternative product in a competitive market.

Alternative products are similar goods that are similar in quality and function compared to an existing product.

A customer can easily swap his choice for an alternative product more in a situation that there are favorable price differences as he believes that he will be able to derive the benefit of the goods purchased at a lower cost.