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6 June, 14:39

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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  1. 6 June, 15:03
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    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.
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