According to Porter\'s 5 forces, which of the follwoing intesifies rivarly, and

Question

According to Porter's 5 forces, which of the follwoing intesifies rivarly, and why or why not?

There are many competitors equal in size

When industry demand is growing slowly

Competitors use price cuts and other tactics to boost unit volume

There is no or low switching costs

When competitors are seeking to increase market share at the expense of others

When the payoff from a strategic move is great      

When exit barriers are high

When competitors are diverse

When strong outside firms can acquire weak ones and launch aggressive moves

Explanation / Answer

There are many competitors equal in size. Intensifies competition as each player has equal resources and each aspire to gain each other market share.

When industry demand is growing slowly. Does not increase competition.

Competitors use price cuts and other tactics to boost unit volume. Intensifies competition as it leads to price war.

There is no or low switching costs. Increasing competition as brand loyalty decreases.

When competitors are seeking to increase market share at the expense of others. Increases competition as each looks to grab other market share.

When the payoff from a strategic move is great. Increases competition as there is a greater reward for successful organization.

When exit barriers are high. Increases competition as companies tries best to survive.

When competitors are diverse. Does not increase competition.

When strong outside firms can acquire weak ones and launch aggressive moves. Competition increases for survival.

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