The rivalry among competing sellers in an industry intensifiesMultiple Choicewhen buyer demand for the product is growing rapidly.when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high.when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories.as the number of rivals increases and as they become more equal in size and competitive capability.when the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business.
Question
The rivalry among competing sellers in an industry intensifiesMultiple Choicewhen buyer demand for the product is growing rapidly.when customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high.when buyer demand is strong and sellers have little or no excess capacity and only minimal inventories.as the number of rivals increases and as they become more equal in size and competitive capability.when the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business.
Solution 1
The rivalry among competing sellers in an industry intensifies:
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When buyer demand for the product is growing rapidly: This is because as demand increases, more companies will want to enter the market to take advantage of the potential profits, leading to increased competition.
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When customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high: This can intensify rivalry as companies will compete fiercely to retain their customers and prevent them from switching to competitors.
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When buyer demand is strong and sellers have little or no excess capacity and only minimal inventories: In this situation, companies may engage in price wars or other competitive strategies to secure market share.
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As the number of rivals increases and as they become more equal in size and competitive capability: More competitors mean more options for consumers, which can intensify competition. Similarly, if companies are of similar size and capability, they are likely to be more direct competitors.
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When the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business: This can lead to intense competition as companies strive to differentiate their products and gain a competitive edge.
Solution 2
The rivalry among competing sellers in an industry intensifies:
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When buyer demand for the product is growing rapidly: This is because as demand increases, more companies will want to enter the market to take advantage of the potential profits, leading to increased competition.
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When customers are brand loyal and their costs to switch to competing brands or substitute products are relatively high: This makes it harder for new entrants to gain market share, leading to increased competition among existing companies.
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When buyer demand is strong and sellers have little or no excess capacity and only minimal inventories: This can lead to a price war, as companies compete to meet demand and sell their limited stock.
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As the number of rivals increases and as they become more equal in size and competitive capability: More competitors mean more options for consumers, which intensifies competition. Similarly, if companies are of similar size and capability, they are likely to be more competitive with each other.
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When the products of rival sellers are highly differentiated products and the industry consists of so many rivals that any one company’s actions have little direct impact on rivals’ business: This can lead to intense competition as companies strive to differentiate their products and attract customers.
Similar Questions
Factors that weaken rivalry among competing sellers includeMultiple Choicelow buyer switching costs.slow growth in buyer demand.rapid growth in buyer demand, high buyer costs to switch brands, and so many industry rivals that any one company’s actions have little impact on the businesses of its rivals.standardized or else weakly differentiated products among rival sellers.the presence of one or more rivals that are dissatisfied with their current position and market share.
The rivalry among competing sellers tends to be less intense when Question 10AnswerA.industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit sales.B.buyer demand is weak and many sellers have excess capacity and/or inventory.C.industry rivals are not particularly aggressive or active in making fresh moves to improve their market standing and business performance.D.rivals have diverse strategies and objectives and are located in different countries.E.rival sellers have weakly differentiated products.
Rivalry among competing sellers decreases Question 9AnswerA.when buyer demand is growing rapidly.B.as it becomes less costly for buyers to switch brands.C.as the products of rival sellers become commoditized.D.when there is excess production relative to demand.E.as the number of competitors increases.
The strength or weakness of the potential entry of rivals as a competitive force isMultiple Choicestrongly correlated with the level of supplier power and with the number of suppliers that may seek to integrate forwards into the industry.contingent upon the strength of buyer loyalty to existing brands.contingent upon whether the industry’s growth and profit prospects are strongly attractive to potential entry candidates.contingent upon whether the strategies of industry members are well matched to the industry’s key success factors.strongly correlated with the degree to which the industry’s driving forces make it harder or easier for new entrants to be successful.
Buyer bargaining power is strong whenMultiple choice question.demand is weak.buyers make purchases in small quantities.buyers place high importance on brand reputation.the cost of switching to a competing brand is high.
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