{"id":211539,"date":"2025-05-04T11:46:12","date_gmt":"2025-05-04T11:46:12","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=211539"},"modified":"2025-05-04T11:46:14","modified_gmt":"2025-05-04T11:46:14","slug":"which-of-the-following-is-not-among-the-factors-that-determine-whether-competitive-rivalry-among-industry-members-is-strong","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/05\/04\/which-of-the-following-is-not-among-the-factors-that-determine-whether-competitive-rivalry-among-industry-members-is-strong\/","title":{"rendered":"which of the following is not among the factors that determine whether competitive rivalry among industry members is strong"},"content":{"rendered":"\n

which of the following is not among the factors that determine whether competitive rivalry among industry members is strong, moderate, or weak<\/p>\n\n\n\n

The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n

Correct Answer:<\/strong>
How long the industry has existed<\/strong><\/p>\n\n\n\n

\n\n\n\n

Explanation:<\/strong><\/p>\n\n\n\n

Competitive rivalry refers to the intensity of competition among existing firms within an industry. Understanding this rivalry is essential for assessing an industry\u2019s attractiveness and for shaping strategic decisions. Michael Porter\u2019s Five Forces framework identifies several factors that influence the degree of rivalry, including:<\/p>\n\n\n\n

    \n
  1. Number of Competitors and Market Size<\/strong>: A higher number of competitors or a shrinking market can intensify rivalry.<\/li>\n\n\n\n
  2. Industry Growth Rate<\/strong>: Slower growth often leads to fights for market share, increasing competitive pressure.<\/li>\n\n\n\n
  3. Product Differentiation<\/strong>: When products are similar, price competition becomes intense.<\/li>\n\n\n\n
  4. Switching Costs<\/strong>: If customers can easily switch brands, rivalry increases.<\/li>\n\n\n\n
  5. Fixed Costs and Overcapacity<\/strong>: High fixed costs force firms to operate at full capacity, potentially driving prices down to remain competitive.<\/li>\n\n\n\n
  6. Exit Barriers<\/strong>: If it’s difficult or costly for firms to leave the industry, rivalry remains high because weak competitors stay.<\/li>\n<\/ol>\n\n\n\n

    However<\/strong>, the length of time the industry has existed<\/strong> is not<\/strong> a direct determinant of competitive rivalry. An industry might be new but face intense competition (e.g., fintech or e-commerce startups), or it might be old and stable with minimal rivalry (e.g., utilities or railroads). What matters more is how firms behave within the industry, their strategic positioning, and market dynamics, not the age of the industry itself.<\/p>\n\n\n\n

    For example, the automobile industry<\/strong>, which has existed for over a century, still experiences strong competitive rivalry due to innovation, brand competition, and changing consumer preferences. Conversely, a newly emerging industry<\/strong> like AI-based healthcare might have fewer competitors initially, leading to weak rivalry, though this can change rapidly.<\/p>\n\n\n\n

    Thus, while the age of the industry can give context, it does not directly influence<\/strong> the intensity of competition<\/strong>. Strategic factors, market conditions, and structural forces are far more important in determining the strength of competitive rivalry.<\/p>\n","protected":false},"excerpt":{"rendered":"

    which of the following is not among the factors that determine whether competitive rivalry among industry members is strong, moderate, or weak The correct answer and explanation is : Correct Answer:How long the industry has existed Explanation: Competitive rivalry refers to the intensity of competition among existing firms within an industry. Understanding this rivalry is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-211539","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/211539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=211539"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/211539\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=211539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=211539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=211539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}