Explain the Rivalry between industry competitors

Question

Explain the Rivalry between industry competitors.

Answer 1

Rivalry can be illustrated as:

a. Cutthroat or brutal when competitors connect in protracted price wars or habitually employ other aggressive plans that are jointly destructive to profitability

b. Fierce to strong when the battle for market share is so energetic that the turnover margins of most industry members are pressed to bare bones levels

c. Moderate or normal when the maneuvering among industry members still permits most members to earn acceptable profits

d. Weak when most companies are relatively well fulfilled with their market shares and sales growth, rarely undertake unpleasant maneuvers to steal customers away from one another and have comparatively attractive earnings and returns on investments.