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


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