Substitute Products Pose a Strong Threat When They Are More

question 10

True/False

Substitute products pose a strong threat when they are more effective and priced lower than your existing products.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash or goods, used to generate income or wealth.

Internal Rate

A financial metric, often referred to as the internal rate of return (IRR), that calculates the profitability of potential investments.

Return

Total monetary flow of an asset as a fraction of its price.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.