View presentation (PDF) - Department of Supply Chain Management
View presentation (PDF) - Department of Supply Chain Management
View presentation (PDF) - Department of Supply Chain Management
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Porter’s Five Forces –<br />
Threat <strong>of</strong> Substitutes<br />
EXAMPLE<br />
Original<br />
Product/Service<br />
• Paper grocery sacks<br />
• Airline travel<br />
• Printed forms<br />
• Steel pipe<br />
• Electricity<br />
• Grocery stores<br />
Substitute<br />
Product/Service<br />
• Plastic grocery sacks<br />
• Video conferencing<br />
• Electronic forms<br />
• PVC pipe<br />
• Co-generated power<br />
• Internet<br />
Factors Influencing the Threat<br />
<strong>of</strong> Substitutes<br />
• relative performance <strong>of</strong> substitutes<br />
• relative price <strong>of</strong> substitutes<br />
• switching costs<br />
• buyer propensity to substitute<br />
49
Change language