Parnell & Lester (2008) explains that “ Substitute products are Alternative offerings produced by firms in another industry that satisfy similar consumer needs” (p. 48). Substitute products are a threat because the substitute can restrict the prices that firms can change. They can occur because firms in one of the businesses may be rivals with other businesses in other commerce. For example, all the different name brand cereals at Kroger’s the grocery chain has produced a line of Kroger brand cereals that immate the name brands. The Kroger brand cereals sell at a lower price and they actual taste better than the name brand cereals. Krogers has a factory where they take certain brands and replicate the name brand and sell the products at a lower
