Which of the following is true regarding competitive rivalry?
A)The more competitors an industry has,the higher will be the differentiation among them.
B)High differentiation among competitors increases competitive rivalry.
C)Excess capacity within an industry can cause competitors to intensify their moves against one another.
D)Intense competitive rivalry leads to higher prices and margins.
E)Intense competitive rivalry leads to lower marketing and sales expenses for retaining customers.

Question

Quizplus · Accepted Answer

Excess capacity within an industry can lead to oversupply and price wars, causing competitors to intensify their moves against each other in order to capture market share.

Which of the Following Is True Regarding Competitive Rivalry