Page 44 - BrewDog Industry Analysis
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5. Threat of substitute goods/services
Substitute products are produced in a different industry
but crucially satisfy the same customer need for
customers. Industries are always competing with one
another as all firms in an industry have potential
competitors from other industries. A substitute product can
be regarded as something that meets the same need as
those offered by existing companies in an industry.
If there are many credible substitutes to a firm’s product,
they will limit the price that can be charged and will reduce
industry profits.
This impacts on their profitability as they are unable to
charge excessive prices. Substitutes can take two forms
