Intensity of Rivalry among competitors

• Because an industry’s firms are mutually dependent, actions taken by one company usually invite responses.
• Competitive rivalry intensifies when a firm is challenged by a competitor’s actions or when a company recognizes an opportunity to improve its market position.
• Firms within industries are rarely homogeneous; they differ in resources and capabilities and seek to differentiate themselves from competitors.
• firms seek to differentiate their products from competitors’ offerings in ways that customers value and in which the firms have a competitive advantage
• Common dimensions on which rivalry is based include price, service after the sale, and innovation.
• firms have begun to act quickly (speed a new product to the market) in order to gain a competitive advantage