Porter argues that favorable demand conditions will result in competitive advantage unless the state of rivalry is sufficient to cause firms to respond to them.

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Porter argues that favorable demand conditions alone are not enough to result in competitive advantage. The state of rivalry among firms also plays a crucial role in how firms respond to these conditions. In other words, if there is intense competition in the industry, firms will try to match or exceed their competitors' efforts to capitalize on favorable demand conditions, thereby reducing the possibility of sustained competitive advantage.

Porter Argues That Favorable Demand Conditions Will Result in Competitive