Question

In the slow-growing airline industry, there are many equally balanced competitors selling products that lack differentiation. This marketplace is most likely to experience high ___________.

a. bargaining power of suppliers
b. intensity of rivalry among competitors
c. threat of new entrants
d. threat of substitute products

Answer 1

The marketplace is most likely to experience high b) intensity of rivalry among competitors.

Step-by-step explanation:

The marketplace described in the question is most likely to experience high intensity of rivalry among competitors.

In an industry with many equally balanced competitors selling products that lack differentiation, there is intense competition among these firms. Each competitor is vying for the same customer base and market share, leading to aggressive pricing strategies, marketing campaigns, and other competitive tactics.

For example, in the slow-growing airline industry, if multiple airlines offer similar routes, flight frequencies, and services, they will compete fiercely to attract passengers. This competition can result in price wars, discounts, and other competitive strategies to differentiate themselves from their rivals and gain a larger market share.