Question

Threat of Substitute Products how its effect the market today compared to 20 years ago?

Answer 1

Yes substitute products have affected market a lot these days because when the substitutes of products were not available in the market then the companies were able to make good profits and there was no tension in the minds of companies because no one was there to give competition.But as substitutes came in the market the companies became very much alert and had to be very active all the time because company's financial situation affected a lot.Thus,various important decisions were taken by the companies to make the company financially strong in every situation.

When substitutes come in the market,the the consumers start shifting their choices to other products which are of similar nature.Thus,to attract consumers towards itself,companies have to become very clever and positive and has to take various actions to make good reputation in the market so that they can retain their customers.