Question $17$While doing the necessary detective work can be tedious and time$-$consuming, studying the strategies and situations of rival

companies $($most especially close rivals$)$ well enough to be able to anticipate many of their next moves has the big advantage of

allowing company managers to accurately predict which rival companies are destined to gain market share and which ones

are destined to lose market share over the next $3-5$ years.

enabling a company to successfully underprice rival companies and steal away some of their sales and market share.

enabling company managers to determine which successful strategy elements of rival companies need to be quickly

incorporated into the company's own strategy.

helping company managers determine which rivals in other strategic groups need to be monitored very closely.

enabling managers to prepare effective countermoves $($perhaps to even beat a rival to the punch$)$ and to take rivals' probable

actions into account in crafting their own best course of action.

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

greatly strengthens the number of driving forces and the power of their impact on industry members.

typically results in a "sellers' market" where industry members can raise prices and earn large profit margins.

tends to mean that the industry will have fewer than $3$ key success factors.

results in an unattractive strategic group map where all industry members are crowded into the top right corner of the map

and forced into competing on the basis of rapid product innovation.

makes it hard for industry members to earn attractive profits.