The state of competition in an industry is a function of
A) competitive pressures associated with rivalry among competing sellers to attract customers.
B) competitive pressures coming from the attempts of companies in other industries attempting to win buyers over to their substitute products.
C) competitive pressures associated with the threat of new entrants into the marketplace.
D) competitive pressures associated with the bargaining power of suppliers and customers.
E) All of these choices are correct.

Question

Quizplus · Accepted Answer

The state of competition in an industry is determined by a combination of competitive pressures associated with rivalry among existing competitors, threat of new entrants, bargaining power of suppliers and customers, and the threat of substitute products or services. Hence, all the given choices affect the competition in an industry, making option (E) the correct answer.

The State of Competition in an Industry Is a Function