It is important to analyze the number of competitors and their ability to threaten your company. Which of the following is true based on this statement?

Question

A. The larger the competition the less power you have.
B. The larger the competition the more power you have.
C. When competition is high a company has greater power.
D. When competition is high they can achieve higher sales and profits.

Answer 1

Based on the statement about analyzing the number of competitors and their ability to threaten your company, the most relevant option is:

A. The larger the competition the less power you have.

This is because, generally, when there are more competitors in a market, the market power of each individual company diminishes, leading to more competitive pressures and potentially lower profit margins.