Rivalry among existing competitors is one of Porter's Five Forces. Under what specific conditions does this rivalry become intense ?
CS Professional · Strategic Management and Corporate Finance · PYQS · December 2024
Rivalry among existing competitors is one of Porter's Five Forces. Under what specific conditions does this rivalry become intense ?
Answer & Explanation:
In competitive industry, firms have to compete aggressively for a market share, which results in low profits. Rivalry among competitors is intense when: There are several competitors; Exit barriers are high; Industry of growth is slow or negative; Products are not differentiated Products can be easily substituted; Low customer loyalty.
Topics: Strategic Management
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