In your industry, the businesses compete essentially on price. This is an example of the _______ in Porter's competitive forces model.

Question

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The fact that businesses compete on price indicates intense rivalry among existing firms in the industry, as they try to win customers over each other by offering lower prices. Bargaining power of customers would refer to how much influence the customers have over the prices of the products or services. Bargaining power of suppliers would refer to how much influence suppliers have over the prices of the products or services. Threat of entry of new competitors would refer to the ease or difficulty of new businesses entering the market. Threat of substitute products or services would refer to how much influence alternative products or services have over the prices and demand of the industry's products or services.

In Your Industry, the Businesses Compete Essentially on Price