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. rev: 03_23_2016_QC_CS-46415 Multiple Choica.threats of substitute products and servicesb.threats of new ideasc.power of the suppliersd.competitive rivalry among competitorse.buyers' negotiating influence

Answer 1

Answer:

A)

NuBreed's efforts are an example of the threats of substitute products and services in Porter's model for industry analysis.

Explanation:

Porter's five forces are:

1. Threat of New Entrants
2. Threat of Substitute Products or Services: a substitute product is an available product from another company that your customers might purchase since they offer similar benefits than your product.
3. Bargaining Power of Buyers
4. Bargaining Power of Suppliers
5. Competitive Rivalry Among Existing Firms