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 hard 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

A competitive environment with weak to moderate rivalry, high entry barriers, weak competition from substitutes, and little bargaining power from suppliers and customers creates an opportunity for industry members to earn attractive profits. The lack of strong driving forces and low bargaining power may make it easier for established businesses to maintain their market position and reap the rewards of a successful business model. However, it is still possible for new firms to enter the market if they are able to differentiate their products. Low costs can certainly enhance a company's competitiveness, but it is not a required factor in this scenario.

A Competitive Environment Where There Is Weak to Moderate Rivalry