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Threat of Substitutes. A high threat of substitute products makes your industry less attractive and decreases the level of potential profit that can be achieved. 5 Forces Model Change Management Small Business Resources Business Analysis Impacts Factors and Examples. . Threat of new entrants. In addition to the threat of substitutes the other four forces as designated by Mr Porter are. The threat of substitutes is the availability of other products that a customer could purchase from outside an industry. Food Healthcare In the long. Start creating a list. A substitute is a product that performs the same or similar function as another product. A threat of substitutes is the potential that customers will replace your product or service with something completely different outside your market. There is a low threat of substitutes. One of Porters Five Forces identified by Michael E. For example