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 will increase the rivalry among these four players?
A)a government regulation hindering the entry of new players
B)a significant slowdown in market growth
C)a decision by one of the dominant players to launch its products in Argentina
D)a ban on Internet telephony

Question

Quizplus · Accepted Answer

A significant slowdown in market growth would mean that the players have to compete for a smaller market share, which would increase rivalry among them. Option A would not affect the existing players and may actually reduce rivalry. Option C is a decision by one player and may not necessarily increase rivalry among the others. Option D would not affect the current players in Brazil but may create opportunities for new players to enter the market, reducing the concentration of the industry.

Competition Is Not Severe in the Telecommunication Industry in Brazil