Question

In: Finance

In the five-forces analysis, factors which one of the followingincreases competitive rivalry in an industry?...

In the five-forces analysis, factors which one of the following increases competitive rivalry in an industry?

a. Large number of competitors

b. High switching costs for customers

c. Rapid market growth

d. High levels of product differentiation

Solutions

Expert Solution

The five-force analysis says that if the competition in the industry is high, there will be increasing competitive rivalry. Rapid growth, high switching cost and high product differentiation will actually reduce the rivalry. Hence,

In the five-forces analysis, factors which one of the following increases competitive rivalry in an industry?

A. Large number of competitors


Related Solutions

Discuss Porter Five (5) Forces Analysis of Walgreen Boots Alliance, Inc 1. Competitive Rivalry 2. Supplier...
Discuss Porter Five (5) Forces Analysis of Walgreen Boots Alliance, Inc 1. Competitive Rivalry 2. Supplier Power 3. Buyer Power 4. Threat of Substitution 5. Threat of New Entry
1. Explain how each of the Porter’s Five Forces apply to the fast food industry (Rivalry...
1. Explain how each of the Porter’s Five Forces apply to the fast food industry (Rivalry amongst existing firms, Threat of new entrants, Threat of substitutes, Buyer Power, and Supplier Power). Fast food companies are those such as McDonalds, Wendy’s, Burger King, etc. State if the competition is high, moderate, or low and explain your answers
Conduct a five forces analysis of Slack Technologies + analysis of the industry
Conduct a five forces analysis of Slack Technologies + analysis of the industry
Question 1:  Identify the five competitive forces (Porter's Five Forces) that determine industry profitability.  Are some...
Question 1:  Identify the five competitive forces (Porter's Five Forces) that determine industry profitability.  Are some industries more profitable than others?  If so, give an example of a profitable industry and a not-profitable industry.  Question 2:  Choose a health care related industry.  Analyze the industry in terms of Porter's Five Forces. 
Question 1: Identify the five competitive forces (Porter's Five Forces) that determine industry profitability. Are some...
Question 1: Identify the five competitive forces (Porter's Five Forces) that determine industry profitability. Are some industries more profitable than others? If so, give an example of a profitable industry and a not-profitable industry. Question 2: Choose a health care related industry. Analyze the industry in terms of Porter's Five Forces
What are the five competitive forces that affect prices and profitability in an industry?
What are the five competitive forces that affect prices and profitability in an industry?
Industry Level Analysis/ Porters Five Forces of Etsy
Industry Level Analysis/ Porters Five Forces of Etsy
Describe one major limitation of each of the following models for competitive analysis: the five forces...
Describe one major limitation of each of the following models for competitive analysis: the five forces model, the strategic groups’ model, and the industry life cycle model. Does the existence of these limitations mean that the models are not useful? Why or why not
Apply Porter’s following five forces study in chapter 1 to the air courier industry. –Rivalry among...
Apply Porter’s following five forces study in chapter 1 to the air courier industry. –Rivalry among Existing Firms –Threat of New Entrants –Threat of Substitutes –Buyer Power -Supplier Power
According to Porter, Rivalry among existing competitors is one of the five forces determining the attractiveness...
According to Porter, Rivalry among existing competitors is one of the five forces determining the attractiveness of an industry. Assess the strength of this force for the restaurant industry. Make sure to discuss all factors that have an effect on the strength of rivalry. Be specific and provide relevant examples to support your arguments.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT