A competitive environment where there is strong rivalry among sellers,low entry barriers,strong competition from substitute products,and considerable bargaining leverage on the part of both suppliers and customers
A) is competitively unattractive from the standpoint of earning good profits.
B) offers little ability to build a sustainable competitive advantage.
C) is highly conducive to achieving strong product differentiation and high brand loyalty.
D) offers moderate to good prospects for achieving low costs and building a sustainable competitive advantage.
E) requires that industry members have a strongly differentiated product offering in order to be profitable.

Question

Quizplus · Accepted Answer

A competitive environment with these characteristics makes it difficult for any one company to effectively differentiate themselves or offer lower costs, leading to low profitability for all industry members.

Answer: B 
 The strong rivalry and low entry barriers make it difficult for any one company to build a sustainable competitive advantage, as competitors can easily copy or improve upon any advantage an individual company may have.

A Competitive Environment Where There Is Strong Rivalry Among Sellers,low