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Free Coursework Essays Tagged ‘product differentiation’
The Threat of Substitute of Products
By placing a ceiling on the prices it can charge, substitute products or services limit the potential of an industry. Unless, it can upgrade the quality of the product or differentiate it somehow, the industry will suffer in earnings and possibly in growth. There is less of a threat of the placing of substitute products in the health care industry. Natural therapies and other natural treatments are gaining popularly but not expected to be a competitor for the industry.
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