Industry Rivalry

Industry rivalry refers to the level of competition among businesses within the same market. It involves actions like price cuts, advertising, product improvements, and innovation to attract customers and gain a competitive edge. High rivalry often leads to aggressive tactics, frequent marketing battles, and price wars, which can benefit consumers through lower prices and better quality. Conversely, low rivalry suggests fewer competitors, allowing companies to set higher prices and maintain more stable profit margins. This dynamic influences how companies strategize and invest, shaping the overall competitiveness and evolution of the industry.