Competition is not severe in the telecommunication industry in Brazil. More than ninety percent of the market is dominated by four large players. Which of the following, if true, will increase the rivalry among these four players?
A) A recent regulation by the government has made the entry of new players more difficult.
B) The market growth has slowed down significantly in recent months.
C) One of the dominant players decides to launch its products in Argentina.
D) In order to strengthen national security, the Brazilian government has banned the use of Internet telephony.

Question

Quizplus · Accepted Answer

When market growth slows down, companies often compete more aggressively for the existing market share, increasing rivalry among the dominant players.

Competition Is Not Severe in the Telecommunication Industry in Brazil