Industry competitors
Industry competitors
The intensity of rivalry between industry competitors depends upon, for example:
- The concentration of the industry (numerous competitors of equal size will lead to intense rivalry)
- Rate of industry growth (slow growth will tend towards greater rivalry)
- Value of fixed costs (high fixed costs might be a temptation to cut prices)
- Whether the product is a commodity dependent upon price and service
- The similarity of competitor strategies (if they have different ideas of how to compete will run into each other continuously)
- Whether the firm has high stakes in achieving success
- Whether the industry exhibits high exit barriers (if yes, then firms will tend to remain i industry even if they are making low or negative returns)
- The concentration of the industry (numerous competitors of equal size will lead to intense rivalry)
- Rate of industry growth (slow growth will tend towards greater rivalry)
- Value of fixed costs (high fixed costs might be a temptation to cut prices)
- Whether the product is a commodity dependent upon price and service
- The similarity of competitor strategies (if they have different ideas of how to compete will run into each other continuously)
- Whether the firm has high stakes in achieving success
- Whether the industry exhibits high exit barriers (if yes, then firms will tend to remain i industry even if they are making low or negative returns)
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