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    Substitue (Biyan)

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    AbiyanSatrioP
    This document assesses the threat of substitutes in Monsanto's industry. It answers yes or no to three questions: 1) Substitutes do not completely offset their lower price with performance limitations. 2) Switching to substitutes would incur costs for Monsanto's customers. 3) Monsanto's customers are not likely to substitute. The conclusion is that the threat of substitutes is high for Monsanto's industry.

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    Substitue (Biyan)

    Uploaded by

    AbiyanSatrioP
    51 views3 pages
    This document assesses the threat of substitutes in Monsanto's industry. It answers yes or no to three questions: 1) Substitutes do not completely offset their lower price with performance limitations. 2) Switching to substitutes would incur costs for Monsanto's customers. 3) Monsanto's customers are not likely to substitute. The conclusion is that the threat of substitutes is high for Monsanto's industry.

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    This document assesses the threat of substitutes in Monsanto's industry. It answers yes or no to three questions: 1) Substitutes do not completely offset their lower price with performance limitations. 2) Switching to substitutes would incur costs for Monsanto's customers. 3) Monsanto's customers are not likely to substitute. The conclusion is that the threat of substitutes is high for Monsanto's industry.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    51 views3 pages

    Substitue (Biyan)

    Uploaded by

    AbiyanSatrioP
    This document assesses the threat of substitutes in Monsanto's industry. It answers yes or no to three questions: 1) Substitutes do not completely offset their lower price with performance limitations. 2) Switching to substitutes would incur costs for Monsanto's customers. 3) Monsanto's customers are not likely to substitute. The conclusion is that the threat of substitutes is high for Monsanto's industry.

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    © All Rights Reserved
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    Threats of Substitutes

    Yes No

    Substitutes have performance limitations, which do not completely


    offset their lower price, or their performance advantage is not X
    justified by their higher price.
    Mosnsanto’s customer will incur costs in switching to a substitute. X

    Monsanto’s customer is not likely to substitute X

    The conclusion is the Rivalry Among Existing Competitors is High


    • Low level of rivalry = + factors (favorable to industry)
    • High level of rivalry = - factors (unfavorable to industry)
    Threats of Substitutes (High)
     Substitutes have performance limitations, which do not
    completely offset their lower price, or their performance
    advantage is not justified by their higher price.
     The industry of water mostly has variance of product and price
    to substitute.
     Mosnsanto’s customer will incur costs in switching to a
    substitute.
     There is no cost incurrance for customer in switching to a
    substitute. They can switch as they like.
     Monsanto’s customer is not likely to substitute
     The customer mostly subscribe water product according the
    their environment. If the substitute environment is more
    capable, then the customer prefer to subscribe it.
    Threat of Substitute Product (High)
     The bottled water industry was considered a substitute
    to a tap water and to residential drinking water
    purification equipment. The bottled water’s price is
    affordable to customer and convenient to carry. Also it is
    very easy to find in stores. And that’s resulted the bottled
    water product sales growth 41% in 4 years and
    distributed world wide. Because of that, the customer
    potentially not subscribing drinking water from water
    treatment companies.

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