When a company is analyzing an industry, which factor would lead the company to believe that the degree of rivalry is high?
A) growth of sales is low
B) products are commodities and can be differentiated easily
C) the number of firms in the industry is small
D) there are few alternative products available

Question

Quizplus · Accepted Answer

Low growth of sales in an industry typically leads to high rivalry among existing firms as they compete more aggressively for market share in a stagnant or shrinking market.

When a Company Is Analyzing an Industry, Which Factor Would