What is characterized by rivalry in market terms?

Rivalry in market terms is fundamentally characterized by competition between companies. This competition arises when different businesses vie for the same customer base, often leading to better services, innovative products, and lower prices as each company seeks to gain an advantage over its rivals. Competition is a driving force in most industries, motivating companies to improve and differentiate themselves within the market.

In contrast, partnership agreements and collaboration strategies typically involve companies working together towards common goals rather than competing against each other. These approaches can lead to shared resources and expertise, helping businesses optimize performance and market reach without directly opposing each other. Merger activities refer to a different concept altogether where two companies combine forces, which may limit competition as they become a single entity in the marketplace. Thus, the essence of rivalry is captured best through the direct competition between businesses, emphasizing the dynamics of the market economy.