GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the amount of power a company has in the market in relation to their competitors
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pertains to how much power customers have as far as driving down the prices of products and services
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pertains to how much power a supplier has as far as increasing the prices of supplies and merchandise a company purchases from them
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helps companies to analyze their industry and determine their level of competitiveness
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negative or unfavorable external factors that affect businesses and their level of competitiveness
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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: -The rivalry among competitors is the strongest of the five forces. This rivalry may cause price wars between competing firms if the industry is centered on price competition. Other sectors compete on product offerings. In this situation, each company tries to market a product with the best selection of features.
Detailed explanation-4: -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.