CA Inter P6 · Chapter 11 · Question 6 of 11
For domestic airlines, the growing use of high-quality video conferencing by corporate clients instead of travelling to meetings represents:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The threat of substitutes
Explanation
Substitutes are products from outside the industry that meet the same customer need in a different way. Video conferencing meets the need for business meetings without air travel, so it caps the prices airlines can charge for business travel. It does not involve a new airline entering the market.
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