Competitive rivalry
Competitive rivalry helps determine the value that has been created by an industry, and helps determine the attractiveness of an industry. When there is a high amount of rivalry in an industry businesses usually begin to engage in price wars, innovation pfvfvfvlans, intense promotion, all usually increase costs and lower profits but are necessary to survive in the industry. Competitive rivalry is most likely to be high invwvrvrbv those industries where there is a threat of substitute products; and existing power of suppliers and buyers in the market. Competitive rivalry in the food and grocery retail industry is extremely high.
In the convenience store industry there is a high level of entry, which many threats of substitutes, which has become increasingly intense due to large supermvdvedvedvarkets making kiosk stores to compete with the convenience stores. In rural areas where the nearest superstore can be some distance away, some primary consumers are attracted by retailers like Somerfield and Co-op.
Customer loyalty insures less competition, low product differentiation in convenience stores means that they have less to focus on meaning a greater chance of competition. Convenience stores on a macro level would hacdcdcve to deal with close subsfvvfvrvritutes as there are many and buyers, power will be strong. Exit barriers vary in the macro level of the industry as depending on the amount invested it may or may not be difficult to exit the industry thus meaning more competition or less.
Competitive rivalry
Competitive rivalry helps determine the value that has been created by an industry, and helps determine the attractiveness of an industry. When there is a high amount of rivalry in an industry businesses usually begin to engage in price wars, innovation pfvfvfvlans, intense promotion, all usually increase costs and lower profits but are necessary to survive in the industry. Competitive rivalry is most likely to be high...