How Can a Company Reduce the Threat of Substitute Products

question 13

Multiple Choice

How can a company reduce the threat of substitute products or services?

• A)Market the product to less than ten customers.
• B)Ignore competitive forces.
• C)By increasing switching costs.
• D)Offer less value making the product far more generic and similar to the competition.

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Definitions:

Profit Margin

The portion of revenue that remains after paying all expenses, indicating the financial health and profitability of a business.

Outside Directors

Board members who are not part of the company's executive team, providing independent oversight.

Board Of Directors

A group of individuals elected to represent shareholders and oversee the management and policy decisions of an organization.

Priority Directors

Directors within a corporation or board who are given precedence for specific tasks or decision-making processes.