Which of the following is NOT a good example of a substitute product that triggers stronger competitive pressures?: Select one: a. Artificial sweetener as a substitute for sugar b. Coca-Cola as a substitute for Pepsi c. Digital cameras as substitutes for film cameras d. Wireless phone service as a substitute for a landline telephone

Question

Business

Jude Barber

22 January, 10:13

Which of the following is NOT a good example of a substitute product that triggers stronger competitive pressures?: Select one: a. Artificial sweetener as a substitute for sugar b. Coca-Cola as a substitute for Pepsi c. Digital cameras as substitutes for film cameras d. Wireless phone service as a substitute for a landline telephone

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Answers (1)

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Laylah Klein · Answer 1

The correct answer is letter "B": Coca-Cola as a substitute for Pepsi.

Explanation:

Substitutes that trigger stronger competitive pressures are those that threaten goods or services to wipe them out from the market. They are usually products that carry a revolutionary technology with it that attracts consumers. Under such a scenario, some companies take advantage of their positions in the market to purchase the revolutionary firm or imitate its technology not to lose market share.

Therefore, Coca-Cola as a substitute for Pepsi would not trigger strong competitive pressures since both corporations offer similar products.