A competitive environment in which there is weak to moderate rivalry among sellers,high entry barriers,weak competition from substitute products,and little bargaining leverage on the part of both suppliers and customers
A)lacks powerful driving forces.
B)gives each industry competitor the best potential for building sustainable competitive advantage.
C)makes it hard for industry members to pursue a differentiation strategy.
D)is conducive to industry members earning attractive profits.
E)requires that industry members have low costs.

Question

Quizplus · Accepted Answer

A competitive environment with weak to moderate rivalry, high entry barriers, weak competition from substitutes, and little bargaining power for suppliers and customers is conducive to industry members earning attractive profits. This is because there is less pressure to lower prices or differentiate products, which allows for higher profit margins. Additionally, the high entry barriers make it difficult for new competitors to enter the market and further increase competition, giving existing players more market power.

A Competitive Environment in Which There Is Weak to Moderate