Exactprep L4M2 Questions

Explanation

According to Michael Porter, the threat of substitution, is a function of three factors:

• The relative value/ price of a substitute compared to an industry’s product

• The cost of switching to the substitute

• The buyer’s propensity to switch

(Porter, Michael E.. Competitive Advantage: Creating and Sustaining Superior Performance (p. 278). Free Press. Kindle Edition.)

Comprehensive and Detailed Explanation (from CIPS L4M2 – Sustainable Specification Writing)

Environmental criteria address resource use, pollution, waste, and emissions.

For machinery, specifying maximum emission limits or energy efficiency ratings ensures sustainability compliance.

Brand, location, or supplier nationality are not environmental factors.

Relevant L4M2 references:

“Environmental sustainability criteria in technical specifications”

“Life cycle environmental performance”