Respuesta :
Marketers must pay attention to the dynamic competitive environment mainly because of competition from rivalry firms in an industry.
Companies are constantly trying to one-up the latest best-selling model - a good indication of a competitive environment.A long list of factors can impact the level of competition and rivalry among firms in an industry.
Many equally balanced competitors controls the dynamics of the marketplace, so competitors will be constantly looking for an edge against the others, resulting in intense rivalry.Companies must steal market share from competitors rather than relying on overall market growth. Thus, softwood lumber manufacturers that wish to gain market share cannot rely on the growth of the marketplace, they must go and take share from the competition.High fixed costs creates pressure for companies to maintain full capacity, and cut prices when necessary.
If products within a sector are similar, buyers are likely to make product choices based simply on low price; this naturally creates significant price competition among suppliers.Capacity increases come in large increments – capacity is often added in large increments, requiring a high level of investment and contributing to high fixed costs.
High exit barriers exist when a high level of investment makes getting out of an industry or market costly for a company. This could result from specialized or high value assets such as those in the paper sector. It could also result from the need to carry a specific business as a compliment to another part of the company.
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