Competitive rivalry based solely on ________ is destructive to firms as it transfers most of the value created in the industry to the customers.
A) price-cutting
B) new product releases
C) promotional campaigns
D) product differentiation

Question

Quizplus · Accepted Answer

Competitive rivalry based solely on cutting prices is especially destructive to profitability because it transfers most, if not all, of the value created in the industry to the customers-leaving little, if anything, for the firms in the industry.

Competitive Rivalry Based Solely on ________ Is Destructive to Firms