ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Competitive rivalry is a measure of the extent of competition among existing firms. Intense rivalry can limit profits and lead to competitive moves, including price cutting, increased advertising expenditures, or spending on service/product improvements and innovation.

Detailed explanation-2: -This rivalry tends to increase in intensity when companies either feel competitive pressure or see an opportunity to improve their position. In most industries, one company’s competitive moves will have a noticeable impact on the competition, who will then retaliate to counter those efforts.

Detailed explanation-3: -It can be defined as the competition that goes on between firms as they try to increase their market share. For example, this can be viewed as the competition that the cooperative faces when members look elsewhere to gin their cotton, sell their products or purchase their supplies.

Detailed explanation-4: -Definition: Direct competition is when two or more businesses offer the same product or service and compete for the same market. There are many common examples of this.