Rivalry among existing competitors is best described as:

• A. Rivalry is competitive pressure among incumbents, often driving price competition.
• B. Rivalry is primarily about new entrants.
• C. Rivalry refers to supplier power.
• D. Rivalry is the market demand.

Answer: (A)

Rivalry among existing competitors refers to the competitive pressure current firms in an industry place on one another as they try to win customers and market share. When growth is slow or margins are tight, these incumbents may engage in price cuts, advertising battles, product improvements, and capacity adjustments to outperform rivals. This dynamic of ongoing moves and countermoves among the firms already in the market is what this description highlights. It’s not about new entrants—that describes the threat of new competitors entering the market—nor about supplier power, which concerns how much influence suppliers have over terms, nor about market demand, which is about customer demand itself. The focus on competitive pressure among incumbents, often leading to price competition, makes this the best description.