Factors that cause the rivalry among competing sellers to be weaker include:
A) low buyer switching costs and rival sellers that are relatively equal in size and capability.
B) rapid growth in buyer demand and high buyer switching costs.
C) few industry rivals,causing any one company's actions to be easily anticipated and countered by its rivals.
D) low barriers to entry and weakly differentiated products among rival sellers.
E) slow growth in buyer demand and strongly differentiated products.

Question

Quizplus · Accepted Answer

When there is rapid growth in buyer demand, there is room for multiple sellers to thrive, which reduces the rivalry among them. Additionally, high buyer switching costs make it difficult for buyers to switch to rival sellers, which reduces the intensity of competition. Therefore, both these factors weaken the rivalry among competing sellers.

Factors That Cause the Rivalry Among Competing Sellers to Be