Konkurranseintensitet

Konkurranseintensitet refers to the degree of rivalry among firms operating within a particular industry. It is a fundamental concept in strategic management and industrial organization, as it significantly influences pricing strategies, profitability, and the overall attractiveness of an industry. High competition intensity means that firms are constantly vying for market share, often through aggressive pricing, product differentiation, or increased advertising efforts. This can lead to lower profit margins for all players involved. Conversely, low competition intensity suggests a less crowded market where firms may have more pricing power and potentially higher profitability.

Several factors contribute to the level of competition intensity. The number and relative size of competitors are crucial. An industry with many small firms or a few dominant players might exhibit different competitive dynamics than an industry dominated by a single firm. The rate of industry growth also plays a role; in rapidly growing markets, firms may focus on expanding their own share rather than directly attacking competitors. Barriers to entry and exit, the threat of substitutes, and the bargaining power of buyers and suppliers, as identified by Porter's Five Forces framework, are also key determinants of competitive intensity. Understanding Konkurranseintensitet is vital for businesses seeking to develop effective strategies and anticipate market changes.