What is rivalry among existing competitors?
a. the ability of buyers to affect the price they must pay for anitem
b. the suppliers' ability to influence the prices they charge forsupplies (including materials, labor, and services)
c. high when it is easy for new competitors to enter a marketand low when there are significant entry barriers to joining amarket
d. high when competition is fierce in a market and low whencompetitors are more complacent

The correct answer is D.  high when competition is fierce in a market and low whencompetitors are more complacent.

Explanation:

The rivalry between existing competitors takes many known forms, including price discounts, new product improvements, advertising campaigns and service improvements. The degree of rivalry that lowers the profit potential of an industry depends, first, on the intensity with which companies compete and, second, on the basis on which they are competing. The intensity of the rivalry is greater if:

The strength of the rivalry not only reflects the intensity of the competition, but also the basis on which it sits. The dimensions on which the competition occurs, as long as the rivals converge to compete in the same dimensions, exerts a great influence on profitability.

Rivalry is especially destructive to profitability if it tends only towards price, because price competitiveness transfers the benefits of an industry directly to its customers. Sustained price competition also teaches customers to pay less attention to the features and service offered by the product.

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