Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as
A)competitive dynamics.
B)resource similarity.
C)threat of substitutes.
D)pioneering new entry.

Question

Quizplus · Accepted Answer

New entry into markets, whether by start-ups or by incumbent firms, nearly always threatens existing competitors. This is true in part because nearly every market need is already being met, either directly or indirectly, by existing firms. As a result, the competitive actions of a new entrant are very likely to provoke a competitive response from companies that feel threatened. This, in turn, is likely to evoke a reaction to the response.

Intense Rivalry Involving Actions and Responses Among Similar Competitors Vying