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Which of the following is most true of the industry in which Ducati competes? Because of the widespread availability of buses and subways and their
Which of the following is most true of the industry in which Ducati competes? Because of the widespread availability of buses and subways and their high appeal to typical motorcycle consumers, the power of substitutes is quite high. It is similar to the industry in which Coke and Pepsi compete, in the sense that there are only two or three large firms, which enables rivalry to be high. It is similar to the industry in which Coke and Pepsi compete, in the sense that there are only two or three large firms, which enables rivalry to be low. One of the factors that enables Buyer Power to be low is that end consumers are extremely fickle in their purchasing habits and will typically choose the least expensive motorcycle option available. The average Supplier to this industry is relatively small (in comparison to the motorcycle manufacturers) and makes relatively undifferentiated products, leading them to have low power
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