Answered: Rivalry among competing sellers grows…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

Rivalry among competing sellers grows in intensity when

A) rivals have similar strategies and buyer demand is growing rapidly.

B) rivals' products/services are sold at widely varying prices and the number of rivals is fewer than 5.

C) buyer demand is growing slowly and the industry is composed of several competitors that are fairly equal in size and competitive capability.

D) the products/services of rivals are strongly differentiated and buyers have high switching costs.

E) there are so many industry rivals that it is very hard to anticipate any one competitor's actions.

Expert Solution

Step 1

Porter's five forces are the model that is used for the identification and analysis of the five competitive forces that shape and define every industry and determine the strengths and weaknesses. So five forces model is frequently used to identify the industry structure to craft the strategy

It is a model that can be applied to any segment of the economy for understanding the competition and how some factors can contribute to the long-term profitability of the company. So there are basically five forces that are studied which are called as Bargaining power of buyers, Bargaining power of suppliers, Threat of new entrants, Threat of substitutes and Intense rivalry

This question talks about the bargaining power of competing sellers which refers to the number of competitors and their ability to influence the market.