In the context of competitive markets, which of the following is influenced by all of the other competitive forces?

• A. The threat of new entrants
• B. The intensity of rivalry among existing competitors
• C. The bargaining power of buyers
• D. The threat of substitute products

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which is about competitive forces in a market. These forces typically refer to Porter's Five Forces framework, which analyzes the competitive environment of an industry.
2. Step 2: Identify the five competitive forces: (1) Threat of new entrants, (2) Bargaining power of buyers, (3) Bargaining power of suppliers, (4) Threat of substitute products or services, and (5) Intensity of rivalry among existing competitors.
3. Step 3: Recognize that the intensity of rivalry among existing competitors is influenced by the other forces because it reflects how firms compete based on the pressure from new entrants, buyer power, supplier power, and substitutes.
4. Step 4: Analyze how each force affects rivalry: for example, more new entrants increase competition, stronger buyer power forces firms to compete on price or quality, and substitutes limit pricing power, all increasing rivalry.
5. Step 5: Conclude that the intensity of rivalry among existing competitors is the force influenced by all the other competitive forces, as it represents the overall competitive pressure within the market.