According to Porter's Five Forces Model,established Companies Face Stronger Threats

question 50

Multiple Choice

According to Porter's five forces model,established companies face stronger threats from substitutes if the substitute's ________.

• A) price is lower
• B) benefits are different
• C) switching cost is higher
• D) functions are different

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Definitions:

Organizational Customers

Entities, such as businesses, governments, or non-profits, that purchase goods or services from another organization for internal use, resale, or to support their operations.

Functional Departmentation

The process of dividing an organization into departments or units based on the functions or roles they perform.

Product Departmentation

An organizational structure method where the company is divided into departments based on product lines or categories.

Departmentation

The process of dividing an organization into different departments, which perform specific roles or tasks.