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 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

In this scenario, the slow growth of demand, market dissatisfaction, low switching costs for buyers, and aggressive moves by strong companies outside the industry to build market share create intense rivalry among competing firms. When the market is attractive, it tends to be crowded, and the competition is fierce. A low-growth market tends to intensify the competition among the existing players, and the threat of new entrants is low. Therefore, A is the best choice.

Rivalry Among Competing Firms Tends to Be More Intense When