The extent of rivalry among established companies is lowest when:
A) the industry's product is a commodity.
B) demand is growing rapidly.
C) exit barriers are substantial.
D) the industry is entering a decline stage.
E) the fixed costs are high.

Question

Quizplus · Accepted Answer

When demand is growing rapidly, companies are less focused on competing for market share since the market itself is expanding, reducing the intensity of rivalry among established companies.

The Extent of Rivalry Among Established Companies Is Lowest When