Threat of Substitute Products
For example if a company outsourcing its graphic design wanted to do the work. Start creating a list. Porter S 5 Forces Model Business Analysis Competitive Analysis Force Bargaining power of customers. . A threat of substitutes is the potential that customers will replace your product or service with something completely different outside your market. Threat of Substitute Products or Services. Here the most important constraint to. Bargaining power of suppliers. 1 Switching costs Switching cost is a negative cost that consumers get regarding to the changing suppliers brands or products. Thus the strength of competitive pressures from substitute products depends on three factors. The threat of substitute products tends to be low if buyers face high costs when switching over to the substitute. The threat of substitutes is the availability of other products that a customer could purchase from outside an indus
