The threat of substitute products is one of Porter’s 5 Forces that can affect the strategic planning

Discussion Topic: The threat of substitute products is one of Porter’s 5 Forces that can affect the strategic planning and sustainability of an organization. For this discussion, please pick at least two organizations that have been adversely affected by substitute products. Please explain why substitute products are a threat and why this occurs. Your own employer can be one of the companies. You may want to explore your company’s competitors and how substitute products have affected their strategy.

First … it is important to define what a substitute product actually is. For instance, consider the automotive industry. What if gas prices escalate or traffic congestion increases? The automotive industry could be threatened by the motorcycle or scooter industry. Correct? So, just think along those lines.