Which factors tend to result in weak rivalry among competing sellers?

Weak rivalry among competing sellers is often influenced by conditions that create a more favorable environment for businesses, enabling them to operate with less competitive pressure. One of the key factors that tends to reduce rivalry is rapid buyer demand growth. When demand for a product or service is increasing quickly, businesses can grow their sales without needing to aggressively compete for market share. This growth can result in sellers focusing on meeting demand rather than engaging in cutthroat competition.

Additionally, high switching costs play a significant role in minimizing rivalry. When customers face significant costs or challenges in switching from one supplier to another, they are more likely to remain loyal to their current providers. This loyalty reduces the competitive pressure that companies face, as they are less concerned with losing their customer base to rivals. As a result, companies can concentrate on enhancing their offerings and growing their business in a more stable environment.

In contrast, other factors, like low buyer switching costs and low barriers to entry, can lead to increased rivalry, as they enable buyers to easily change suppliers and invite new competitors into the market. Weakly differentiated products can intensify competition as sellers fight for customers on price rather than differentiation. Having multiple rivals ready to compete also escalates rivalry, as companies vie for market share against numerous