How can you apply Porter$$s Five Competitive Forces to explain the profit potential of the average firm for different industries?

This video reviews industry analysis using Porter$$s Five Forces framework as applied to the air travel industry and the soft drink industry.

Click the $$ button to watch the video. Then, answer the questions that follow.

Is the threat of substitutes greater in the airline industry or the soft drink industry?

Multiple Choice

The airline industry because we have so many alternate means of transportation

The soft drink industry because all carbonated beverages are the same

The soft drink industry because customers would incur high costs in switching

The soft drink industry because people can choose other beverages, such as water, tea, or coffee

The airline industry because people value their time