ICAB AL Strategic Business Management Practice Questions - ICAB CA Advanced Level Strategic Business Management And Leadership (Bangladesh) Exam

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In Porter's Five Forces framework, which of the following market conditions most significantly strengthens the threat of substitute products or services?

Customers face virtually zero switching costs and the alternative product offers a superior price-to-performance ratio Incumbents possess substantial proprietary production technology protected by patents The industry is characterized by significant capital requirements and heavy brand loyalty Suppliers are highly concentrated and provide differentiated specialized inputs

Correct Answer:

Customers face virtually zero switching costs and the alternative product offers a superior price-to-performance ratio

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