Competitive Rivalry

Competitive rivalry refers to the ongoing struggle between businesses offering similar products or services in the same market. It influences pricing, quality, and innovation as companies strive to attract customers. High competitive rivalry can lead to better choices for consumers but may also squeeze profits for businesses. Factors like the number of competitors, market growth, and customer loyalty affect the intensity of this rivalry. Companies often deploy strategies like advertising, promotions, and new product development to differentiate themselves and gain a competitive edge. Understanding this dynamic is crucial for both businesses and consumers in today’s marketplace.