What are the factors affecting the intensity of rivalry in the industry in which your company is competing? Use figure 3.4 and the accompanying discussion to help you in pinpointing the specific factors most affecting competitive intensity. Would you characterize the rivalry and jockeying for better market position, increase sales, and market share among the companies in your industry as fierce, very strong, strong, moderate, or relatively weak? why?

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FIGURE 3.4 Factors Affecting the Strength of Rivalry Substitutos Rivalry among Compoting Sollers Rivalry increases and becomes a stronger force when: • Buyer demand is growing slowly. • Buyer costs to switch brands are low. The products of industry members are commodities or else weakty differentiated. • The firms in the industry have excess production capacity and'or inventory. • The firms in the industry have high fixed costs or high storage costs. • Competitors are numerous or are of roughly equal size and competitive strength. • Rivals have diverse objectives, strategies, and/or countries of origin. • Rivals have emotional stakes in the business or face high exit barriers. Suppliers Buyers Rivalry decreases and becomes a weaker force under the opposite conditions. Now Entrants FIGURE 3.4 Factors Affecting the Strength of Rivalry Substitutos Rivalry among Compoting Sollers Rivalry increases and becomes a stronger force when: • Buyer demand is growing slowly. • Buyer costs to switch brands are low. The products of industry members are commodities or else weakty differentiated. • The firms in the industry have excess production capacity and'or inventory. • The firms in the industry have high fixed costs or high storage costs. • Competitors are numerous or are of roughly equal size and competitive strength. • Rivals have diverse objectives, strategies, and/or countries of origin. • Rivals have emotional stakes in the business or face high exit barriers. Suppliers Buyers Rivalry decreases and becomes a weaker force under the opposite conditions. Now Entrants

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The factors affecting the intensity of rivalry include 1 Having a higher t... View the full answer