Explain how rivalry among competitors affects businesses. What ...

[nelaaney]

Explain how rivalry among competitors affects businesses.
 
  What will be an ideal response?

Question 2

An organization is using the best-of-breed approach if it ________.
 
  A) creates the best systems with the latest technologies available
  B) procures the best systems, regardless of the vendor
  C) procures whatever systems are offered by the best vendors in the market
  D) outsources the implementation to the best implementation partners in the market

[SAUXC]

Answer to Question 1

The profitability of an industry and its competitive structure is affected by the intensity of rivalry among existing competitors, particularly with respect to how they are competing, and what they compete on. If firms compete mainly on price, rivalry is high and the industry as a whole becomes less profitable because price cutting triggers rounds of retaliation and damaging price wars.

Answer to Question 2

B