When is rivalry among existing competitors high in the Five Forces Model?
A) When there are a large number of competitors in a market
B) When there are a small number of competitors in a market
C) When the competition in a market is fierce
D) When the competition in a market is more complacent allowing some businesses to excel

Question

Quizplus · Accepted Answer

Rivalry among existing competitors is high when competition in a market is fierce. This means that competitors are constantly jostling for market share and are willing to engage in aggressive tactics to gain an edge over their rivals. In such a market, businesses may engage in price wars, engage in aggressive advertising, or seek to differentiate their products in order to stay ahead of the competition. Therefore, option C is the correct answer.

When Is Rivalry Among Existing Competitors High in the Five