Which of the following statements about rivalry in the context of established companies is true?
A) It significantly reduces the costs of established companies.
B) It squeezes profits out of an industry.
C) It enables companies to lower their spending on non-price-competitive strategies.
D) It forces companies to reduce prices when it is less intense.
E) It is unaffected by the demand conditions of an industry.

Question

Quizplus · Accepted Answer

Rivalry in the context of established companies typically leads to intense price competition, which can squeeze profits out of an industry. This is because companies may lower prices to gain a competitive advantage over one another, leading to lower margins for all players in the industry.

Which of the Following Statements About Rivalry in the Context