- This topic has 2 replies, 2 voices, and was last updated 1 year ago by
.
- Posts
Hello tutor,
Got stuck on this question please explain this
44. LJP Company operates train and bus services throughout its home country, as well as some overseas services. LJP Company dominates the market, but has one major competitor. In the context of Porter’s five forces model, which of the following is an example of the threat
of substitutes to LJP Company?A. A decision by GVS Company, an airline, to diversify into land transport systems, with bus and train services targeted at business users
B. A large increase in the costs of inventory for the bus division, imposed by a company that manufactured all of LJP Company’s fleet of buses
C. The launch of new, speed train services on all major domestic and overseas routes by JVM Company. LJP’s main competitor
D. The launch of a free, user-friendly and easily downloadable video conferencing package by ITX Company, a multinational software producer
A is a new entrants to the rail/coach market
B is a threat from suppliers ie higher prices
C is an existing competitor/rival improving their offering
D is a substitute product as people can meet on-line and conduct business whereas they would previously have had to travel.
- The topic ‘Porter five forces’ is closed to new replies.