Rivalry between competitors of an industry tends to be fierce when:
A) exit barriers in the industry are low.
B) fixed costs in the industry are low.
C) competitors are not differentiated from each other.
D) competition is based on the uniqueness of the industry's offerings.
E) the growth rate of demand for the industry's offerings is high.

Question

Quizplus · Accepted Answer

When competitors are not differentiated from each other, rivalry tends to be fierce because companies compete primarily on price and market share, leading to intense competition.

Rivalry Between Competitors of an Industry Tends to Be Fierce