Which of the following factors can determine the intensity of rivalry in an industry?

The intensity of rivalry in an industry is significantly influenced by the factors present in the competitive landscape. When considering the choice that suggests "many or equal size of suppliers," it is critical to understand how supplier dynamics play a role in competitive rivalry.

In an industry where there are many suppliers of equal size, each supplier can easily compete on factors such as price, quality, and delivery. This situation leads to increased competition among suppliers, which can, in turn, pressure companies within the industry to continually improve their offerings and reduce costs to gain a competitive edge. When suppliers are numerous and comparable in size, they often compete for the same customers, which intensifies the rivalry, as companies feel the need to keep pace with rival offerings and pricing strategies.

In contrast, high customer loyalty tends to reduce rivalry because customers are less likely to switch to competitors, even if they offer similar products or lower prices. Limited access to technology can create barriers to entry, thus decreasing the number of competitors and potential rivals. Low demand growth can lead to increased competition as businesses fight for a stagnant pool of customers, but it does not directly reflect the underlying supply dynamics that most strongly drive intense rivalry.

Therefore, the presence of many suppliers of equal size fosters a competitive environment that increases rivalry