Why severe competition may also lead to price wars

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Reference no: EM133356049

Assignment:

In the Porter's Five Forces framework, explain in detail

1. Why intense competition in Rivalry amongst existing competitors may reduce the profitability of an industry by increasing the overall level of competition and reducing the market share of already existing firms?

2. Why severe competition may also lead to price wars, which further damage the profitability of the company.

Reference no: EM133356049

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