The rivalry among competing firms tends to be more intense when
A) demand for the product is growing slowly,one or maybe several industry members become dissatisfied with their market position,buyers have low switching costs,and when strong companies outside the industry acquire weak firms in the industry and launch aggressive moves to build market share.
B) the products/services of rival sellers are strongly differentiated and buyer demand is strong.
C) rivals are relatively content with their market position.
D) there are so many industry rivals that the impact of any one company's actions is spread thinly across all industry members.
E) there are fewer firms in the industry that have unequal market shares.

Question

Quizplus · Accepted Answer

The options in A describe factors that contribute to intense rivalry among competing firms, including slow market growth, dissatisfaction with market position, low switching costs for buyers, and aggressive moves by strong firms. These conditions make it more difficult for companies to differentiate themselves and carve out a profitable niche.

The Rivalry Among Competing Firms Tends to Be More Intense