Competitive Pressures from the Sellers of Substitute Items
What are the Competitive Pressures from the Sellers of Substitute Items?
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Organization in one industry comes under the competitive pressure from the actions of organization in a closely adjacent industry whenever buyers look for the products of the two industries as good substitutes.
The presence of attractively priced and readily available substitutes create competitive pressure by placing a upper limit on the prices industry members can charge without giving consumers an incentive to switch to substitutes and risking sales erosion.
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1. Debbie is the purchasing manager of the Campus Bookstore at Queen's University. Every year in March she needs to plan on the number of 'Graduation Rings' the Bookstore should stock. The "Graduation Rings' are specialty rings made by Ti
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