Additional factors, manipulate the tempo of rivalry

Question

What are the additional factors that manipulate the tempo of rivalry?

Answer 1

Additional factors which manipulate the tempo of rivalry among industry competitors include:

a. Rivalry is generally weaker in fast-growing markets and stronger in slow-growing markets.

b. Rivalry intensifies as the number of competitor’s increases and as competitors become more equal in capability and size.

c. Rivalry is usually weaker in industries comprised of so numerous rivals that the impact of any one organization actions is extend thinly across all industry members; similarly, it is often weak when there are less than five competitors.

d. Rivalry enhances as the products of rival sellers become more uniform.

e. Rivalry enhances as it becomes fewer costly for buyers to switch brands

f. Rivalry is stronger when industry situation tempt competitors to use cost cuts or other competitive weapons to increase unit volumes.

g. Rivalry enhances when one or more competitors become disgruntled with their market position and launch moves to increases their standing at the expense of rivals.

h. Rivalry enhances in proportion to the size of the payoff from a victorious strategic move.