Rivalry Among Existing Firms

Rivalry among existing firms refers to the competition that occurs when companies in the same industry try to attract customers, increase sales, and gain market share. This competition often involves pricing strategies, advertising, product innovation, and customer service. High rivalry typically leads to more intense competition, which can benefit consumers through better products and prices but may also pressure companies to find new ways to stand out. The level of rivalry depends on factors like the number of competitors, industry growth, product differentiation, and exit barriers, influencing the overall business environment and profitability.