The nature and strength of the competitive forces that prevail in an industry is generally a joint product of the
A) pressures associated with rivalry among sellers to attract buyer patronage.
B) threat that firms outside the industry will decide to enter the market.
C) attempts of companies in other industries to win buyers over to their own substitute products.
D) competitive pressures stemming from the bargaining power of both suppliers and buyers.
E) All of these.

Question

Quizplus · Accepted Answer

The nature and strength of competitive forces in an industry are a joint product of all of these factors: rivalry among existing firms, threat of new entrants, substitutes, bargaining power of suppliers and buyers. Therefore, all of the choices (A, B, C, D) are correct, and the best answer is E.

The Nature and Strength of the Competitive Forces That Prevail