As industry growth slows
A) competitive rivalry increases.
B) supplier bargaining power increases.
C) competitive rivalry decreases.
D) bargaining power decreases.

Question

Quizplus · Accepted Answer

As the industry growth slows, the companies compete for a limited market share. This leads to an increase in competitive rivalry among the companies as they try to gain an advantage over each other. Supplier bargaining power may not necessarily increase in this scenario, as the companies may not be willing to pay higher prices for supplies due to the slower growth. Additionally, bargaining power may also not decrease as the companies may still be in need of resources to maintain their operations.

As Industry Growth Slows