What is a characteristic of high competitive rivalry?

High competitive rivalry is characterized by numerous firms competing for market share, which creates an environment where businesses are constantly vying for consumer attention and sales. This intense competition can lead to innovations in marketing strategies, improvements in product quality, and potentially lower prices as companies strive to attract customers.

In markets with many competitors, each firm must not only focus on maintaining its customer base but also on trying to gain an edge over rivals. This situation typically results in companies seeking to differentiate their offerings or compete on price, thereby driving innovation and shifting market dynamics.

The presence of multiple competing firms makes it crucial for each to find ways to stand out, leading to heightened rivalry that can often benefit consumers through better products or services and lower prices. This characteristic underlines the competitive landscape and the challenges firms face in retaining and growing their market share.