A competitive environment where there is strong rivalry among sellers, low entry barriers, strong competition from substitute products, and considerable bargaining leverage on the part of both suppliers and customers
A)is competitively unattractive from the standpoint of earning good profits.
B)offers little ability to build a sustainable competitive advantage.
C)is highly conducive to achieving strong product differentiation and high customer loyalty to the company's brand.
D)offers moderate to good prospects for making a reasonable profit and building a sustainable competitive advantage.
E)requires that industry members have a strongly differentiated product offering in order to be profitable.

Question

Quizplus · Accepted Answer

A competitive environment with strong rivalry, low entry barriers, strong competition from substitutes, and considerable bargaining leverage on the part of suppliers and customers is referred to as a highly competitive industry. Due to the intense rivalry and pressure from supplier and customer bargaining power, it is challenging to earn good profits in this type of industry. As a result, it is considered competitively unattractive.

A Competitive Environment Where There Is Strong Rivalry Among Sellers