Discuss the Difference Between a Company's Existing Direct Competitors and Its

question 97

Essay

Discuss the difference between a company's existing direct competitors and its substitutes and discuss the role substitutes play in an industry.

---

Definitions:

Investment Sold

The act of disposing of an investment asset, which can include stocks, bonds, or real estate, usually to generate cash or realize gains.

Equity Method

An accounting technique used to record investments in associate companies, where the investment's value is adjusted in accordance with changes in the investee's net assets.

Voting Shares

Shares of a company's stock that grant the shareholder the right to vote on company matters, typically in the election of the board of directors.

Open Market

A scenario where trading of goods, services, securities, or assets occurs in a free and unrestricted environment, often characterized by a competitive marketplace.