moderate or weak. Justify and show why you reached your conclusion. For example
it is not enough to write
âCompetitive rivalry is strong because the number of competitors is high
barriers to entry are low and product differentiation is low.â A better explanation is
âThe many competitors in this industry must aggressively battle for market share in this slow-growth market. They each have considerable investments in the physical plant
which makes it difficult to leave the industry. The products are difficult to distinguish from one another
so companies must focus on aggressive
marketing programs to win customers away from their competitors. All these factors contribute to a strong rivalry and continued downward pressure on profit margins.â