What is Competitive Rivalry?
Competitive rivalry is a measure of the extent of competition among existing firms. Intense rivalry can limit profits and lead to competitive moves, including price cutting, increased advertising expenditures, or spending on service/product improvements and innovation.
Questions to ask include:
- How intense is competition in the industry?
- What is the market share of the top companies? Is the industry fragmented or dominated by a few firms?
- What is the rate of industry sales growth? Is the industry mature or in a slow growth phase?
- Are products differentiated? Can customers switch with ease?
- Are there high fixed costs or high exit barriers that keep companies competing?
- What does the Merger & Acquisition (M&A) landscape look like? Are competitors getting stronger through mergers?
- Are there global opportunities or threats?
Who are the Competitors?
- Hoover's This link opens in a new windowHoover's provides industry and sector analysis, including leading companies, trends, news, business challenges, and financial data.
- Mergent Online This link opens in a new windowPerform a company search and click on the "Competitors" tab for a list of U.S. Public or Global Public companies in that industry. Competitors are ranked by revenues but can be sorted by other variables, including market cap.
Research the Competition: Market Share
- Business Insights: Essentials This link opens in a new windowResearch an industry by description or NAICS code to locate information that includes market share reports.
