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Give factors influencing the tempo of cross-company rivalry

Give factors influencing the tempo of cross-company rivalry

Answers

Maurice
(i) Rivalry become more volatile and unpredictable the more diverse competitors are in terms of their visions , strategic intents , objectives , strategies ,resources ,and countries of origin.

(ii) Rivalry increases when strong companies outside the industry acquire weak firms in the industry and launch aggressive , well-funded moves to transform their newly acquired competitors into major market contenders.

(iii) Rivalry intensifies as the number of competitors increases and as competitors become more equal in size and capability.

(iv) Rivalry is usually stronger when the demand for the products is growing slowly.

(v) Rivalry is more intense when industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume.

(vi) Rivalry is stronger when customers’ cost to switch brands are low.

(vii) Rivalry is stronger when one or more competitors are dissatisfied with their market position and launch moves to bolster their standing at the expense of the rivals.

(viii) Rivalry increases in proportion to the size of the playoff from a successful strategic move.

(ix) Rivalry tends to be more vigorous when it costs more to get out of the business than to stay in and compete.
maurice.mutuku answered the question on August 3, 2019 at 13:32

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