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When conducting Porter’s 5 forces industry analysis, low intensity of rivalry makes an industry more attractive and increases profit potential for the firms already competing within that industry. Porter’s Intensity of Rivalry Interpretation Competitors are not strategically diverse.If any of the following occurs, then it may indicate that the intensity of rivalry is low. If any of the following occurs, then intensity of rivalry is high. As a result, consider the nuances of the analysis and the particular circumstances of the given firm and industry when using the data to evaluate the competitive structure and profit potential of a market. And of the factors that do apply, some may indicate high intensity of rivalry and some may indicate low intensity of rivalry however, the results will not always be straightforward. • threat of new entrants download
Download the External Analysis whitepaper to gain an advantage over competitors by overcoming obstacles and preparing to react to external forces.ĭownload The External Analysis Whitepaper It also increases profit potential for the existing firms.Ĭonducting a competitor analysis can be overwhelming and confusing, but it doesn’t have to be. In comparison, low intensity of competitive rivalry makes an industry less competitive. High intensity of competitive rivalry can make an industry more competitive and thus decrease profit potential for the existing firms.
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