The competition among firms is a free economy syndrome it may be highly competitive or may be rival in nature. Following factors may have lead to high competition or rivalry among firms.
- Equally balanced competitors,
- Product capacity,
- Size of the firm
- Slow industry growth, that is demand growth is slow,
- High fixed cost,
- Lack of differentiated products and low or no switching cost,
- High strategic stacks,
- Large increase in manufacturing capacity,
- High exit barriers,
- Economic strategy and emotion,
- Diversity of competitors intensified competition,
- Merger or holding company has already been done in the industry.
