What are substitute products?

Substitute products — these are goods or services that can satisfy the same need or solve the same problem as your product, but belong to a different category or use a different technology. They are not direct competitors, but can reduce demand for your product by offering an alternative solution.

For example, for traditional taxis, substitute products are car-sharing services or public transportation. For coffee — energy drinks or tea.

Understanding substitute products is important for assessing the competitive environment and strategic planning.