Factors that tend to result in weak rivalry among competing sellers include:
A) less costly buyer switching costs and when low exit-barriers exist keep unprofitable firms from leaving the industry.
B) rapid growth in buyer demand,high buyer costs to switch brands,and more strongly differentiated products.
C) less strongly differentiated products among rival sellers.
D) rivals that are quite diverse in terms of their strategies,objectives,and countries of origin.
E) conditions where outsiders have recently acquired weak competitors and are challenged in migrating them into major contenders.

Question

Quizplus · Accepted Answer

Weak rivalry among competing sellers is more likely when there is rapid growth in buyer demand, high buyer costs to switch brands, and more strongly differentiated products. This is because buyers are less likely to switch to a competitor if it involves significant costs, and if the products are highly differentiable, each competitor will have a more unique market share. Less costly buyer switching costs and low exit barriers (as mentioned in option A) can actually make it easier for unprofitable firms to leave the industry, thus increasing the level of rivalry among remaining firms. Less strongly differentiated products (as mentioned in option C) would also result in more intense rivalry as there are fewer distinguishing factors among competitors. The factors mentioned in options D and E may have some impact on industry rivalry, but they are not specifically related to weak rivalry.

Factors That Tend to Result in Weak Rivalry Among Competing