The influence of substitution on the firm's business and industry environment are examined in this component of the Five Forces analysis. The following external factors contribute to the strong threat of substitutes are; High performance of substitutes Low switching costs High availability of substitutes Depending on the respective price-to-performance ratios of the many goods or services that customers can use to meet the same fundamental need, alternative items can threaten the profitability of an industry. Switching costs, or the expenses associated with retraining, retooling, and redesigning when a consumer converts to a different kind of good or service, have an impact on the danger of substitution. An S-shaped curve is followed during the substitution procedure. It begins slowly when a small number of trendsetters take a chance on experimenting with the replacement, gains up momentum if other consumers follow suit, and finally levels off when practically all the opportunities for a cheap replacement have been explored. In today's health conscious environment, a new company might be able to capitalize on an organic, or natural soft drink. Although pulp and press is a competitor of Coca Cola and Pepsi, it promotes natural teas, waters and juices. If a company could utilize a similar theme of pulp and press but apply it to a soft drink, they may be able to grab a solid portion of the diet cola (health conscious) market

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