Threats of Substitutes

Yes No

Substitutes have performance limitations, which do not completely

offset their lower price, or their performance advantage is not X
justified by their higher price.
Mosnsanto’s customer will incur costs in switching to a substitute. X

Monsanto’s customer is not likely to substitute X

The conclusion is the Rivalry Among Existing Competitors is High

• Low level of rivalry = + factors (favorable to industry)
• High level of rivalry = - factors (unfavorable to industry)
Threats of Substitutes (High)
 Substitutes have performance limitations, which do not
completely offset their lower price, or their performance
advantage is not justified by their higher price.
 The industry of water mostly has variance of product and price
to substitute.
 Mosnsanto’s customer will incur costs in switching to a
substitute.
 There is no cost incurrance for customer in switching to a
substitute. They can switch as they like.
 Monsanto’s customer is not likely to substitute
 The customer mostly subscribe water product according the
their environment. If the substitute environment is more
capable, then the customer prefer to subscribe it.
Threat of Substitute Product (High)
 The bottled water industry was considered a substitute
to a tap water and to residential drinking water
purification equipment. The bottled water’s price is
affordable to customer and convenient to carry. Also it is
very easy to find in stores. And that’s resulted the bottled
water product sales growth 41% in 4 years and
distributed world wide. Because of that, the customer
potentially not subscribing drinking water from water
treatment companies.