Some of the factors that make for intense rivalry include:
Numerous Equal Competitors, whereby in the case industry, has multiple competitors who all operate at an equal level of product or service quality, there is a higher threat of competition. Companies may feel the need to engage in more aggressive activities to gain a higher share of the market If they do not enjoy any clear advantage over competitors. Also, Higher Fixed Costs could lead to pressure to produce at full capacity to achieve economies of scale. To ensure that this stock is cleared, companies may guard their market share aggressively and try to obtain more.
Another factor is the Switching Costs in that where there are little or no switching costs for a consumer. The industry may be more competitive. We also have Undifferentiated Products, which means that consumer choice will be based on price and value for money. This will naturally lead to price-based competition. Moreover, the diversity of competition will mean the alternate method will change competition and business practice. Lastly, where there are barriers to exit within the industry, then the companies with low growth and profit will remain active, leading to competitive pressure to stay relevant and earn profits.