The threat of substitute products and services There are products that are capable of satisfying the same need as others. For this reason, the customer can alter the purchase decision and buy the cheapest or the best quality. The presence of substitute products influences the price that can be charged or that customers can choose to switch to a certain brand. It is essential to always be alert and attentive to the news in the sector and how this influence can affect us.
This reason, it is necessary to increase the sales channels, the investment in marketing and advertising, the quality of the product, improve the price and seek Whatsapp Mobile Number List diversification. 1.5. Rivalry between existing competitors Another very important factor is the establishment of strategies that position our product or service in the market. Each competitor must establish a good plan to overcome or know how to compete against possible threats.
On the other hand, it is necessary to differentiate between perishable or more or less stable products because the rivalry between competitors increases if the product is perishable. For this reason, it is necessary to propose increasing investment in marketing and advertising, lowering the fixed cost, increasing quality, promoting new services or seeking alliances with other associations.
Define a good strategy as a guarantee of success To establish a good strategy in the market, we must be in tune with our mission, vision and values. It is impossible to develop a solid strategy until these three points are well defined. Porter's five forces allow us to develop new business strategies to analyze the competition of our company within the sector to which we belong or where we operate.