A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers
A)lacks powerful driving forces.
B)gives each industry competitor the best potential for building sustainable competitive advantage over rival firms.
C)makes it challenging for industry members to compete successfully unless they can strongly differentiate their products.
D)is conducive to industry members earning attractive profits.
E)requires that industry members have low costs in order to be competitively successful.

Question

Quizplus · Accepted Answer

The characteristics described in the scenario indicate a situation where industry members have little competition from substitute products, high entry barriers, and weak competition from other sellers. Additionally, both suppliers and customers have little bargaining power. This means that industry members can potentially earn attractive profits since there is a limited amount of competition.

A Competitive Environment Where There Is Weak to Moderate Rivalry