Some industries' competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's five forces

Rivalry among existing competitors.

Rivalry among new entrants. True or False

Question

Social Studies

Raphael Anderson

23 August, 23:54

Some industries' competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson's in the United States experience fierce competition and offer similar marketing campaigns to compete. What is this an example of in terms of Porter's five forces

Rivalry among existing competitors.

Rivalry among new entrants. True or False

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Answers (1)

Know the Answer?

Armani Olsen · Answer 1

Answer:True

Explanation:Competitive Rivalry refers to a competition that exist amongst the presently existing firms for example among retail grocery stores which lead to extreme price cutting and major advertisement in order to attract customers and this reduces the profit that each company makes.

Since these are mostly profitable businesses they attract more new entrants which comes as a competitive threat to the already existing companies, because more industries enter the same retail industry to also have a share in this profitable industry.

It is a profitable industry because we buy food all the time, non stop so there is no way one can't make a profit in this kind of business, the reason it attracts more new entrants.