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.
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 M&A landscape look like? Are competitors getting stronger through mergers?
Are there global opportunities or threats?