Of the five forces, rivalry amongst competitors is the most important because it represents the best determinant of profitability for an average company within an industry.

Question

Quizplus · Accepted Answer

While rivalry amongst competitors is a significant factor, the importance of each of the five forces (rivalry among existing competitors, threat of new entrants, threat of substitute products or services, bargaining power of buyers, and bargaining power of suppliers) varies by industry and over time. No single force is always the most important, as the context and dynamics of each industry determine which forces are most influential on profitability.

Of the Five Forces, Rivalry Amongst Competitors Is the Most