Rivalry decreases (and profits tend to go down) when industry growth is slow, there are high fixed costs in doing business, and the market lacks differentiated products.

Question

Quizplus · Accepted Answer

Rivalry increases (and profits tend to go down) under these conditions because firms compete more aggressively for market share, leading to price wars and reduced profitability.

Rivalry Decreases (And Profits Tend to Go Down) When Industry