Substitute products are components of an organization’s immediate industry and competitive environment. They are products or services that can satisfy the same customer needs or wants as the organization’s offerings, but are provided by different industries or markets. Substitute products can affect the demand, price, and profitability of the organization’s products, and require the organization to monitor and respond to the changes in customer preferences and competitive pressures. Political factors, interest rates, and sociocultural forces are examples of macroenvironmental factors, which are broader and more general forces that affect the organization and its industry, but are not directly related to its competitors or customers. References :=

CPIM Exam Content Manual, Module 1: Supply Chains and Strategy, Section 1.1: Business Strategy, p. 4

Strategic Supply Chain Management: The Five Core Disciplines for Top Performance, Chapter 2: Align Your Supply Chain with Business Strategy, Section 2.2: Assessing the External Environment, pp. 25-26