GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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rivalry between two or more companies within the same industry
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a contractual agreement combining two businesses to execute a certain business undertaking
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agreements between companies or partners to reach objectives of a common interest
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a licensed property, trademark or concept to another entity by a business owner
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the money a country owes another country
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Detailed explanation-1: -Competitive rivalry is the measurement or intensity of competition between companies in the same field or industry. Some competitive rivalry is often healthy for all businesses involved, as it encourages product and service innovation and discourages unnecessary price increases for customers.
Detailed explanation-2: -Industry rivalry usually takes the form of jockeying for position using various tactics (for example, price competition, advertising battles, product introductions). This rivalry tends to increase in intensity when companies either feel competitive pressure or see an opportunity to improve their position.
Detailed explanation-3: -The intensity of rivalry among competitors in an industry refers to the extent to which firms within an industry put pressure on one another and limit each other’s profit potential. If rivalry is fierce, then competitors are trying to steal profit and market share from one another.
Detailed explanation-4: -Just three forms of rivalry capture the dynamics of these processes: developing potential customers, capturing rivals’ customers and competing for sales to shared customers. Each of these applies not only to customers, but also to other assets that must be won against rivals.
Detailed explanation-5: -Direct competitors. These are businesses offering similar (or identical) products or services in the same market. They also vye for the same customer base. Some famous examples of direct competitors include Apple versus Android, Pepsi versus Coca-Cola, and Netflix versus Hulu.