WeBreak4Bikes Inc. has a new U.S.-based client in the bicycle industry. The client’s company produces only bicycles for riding on the road. The bicycles are used for reliable general purpose transportation. When asked to identify a potential substitute for the bicycle industry from the Five Forces perspective, you would select
Multiple Choice
hot air balloons.
motorcycles.
None of these are substitutes.
tractors.
Answered by Expert Tutors
| motorcycles. Explanation A close substitute to the bicycle industry from the Five Forces perspective would be motorcycles. Porters identifies threat to rivalry as coming from a product that can be used as a substitute to the given good, in our case the bicycles. If the price of bicycles increases, some potential bicycle customers would opt to demanding the cheap motorcycles that serves the same purpose for general transportation |
