ibps-so 2024 · Question 162 of 209

The Indian telecom sector saw a period where players like Airtel, Vi, and Jio were engaged in a "Price War," offering unlimited data at the world's lowest prices just to protect their market share. According to Porter, the Intensity of Rivalry is highest in this scenario because:

1. AThe industry is experiencing rapid growth, allowing all players to expand without taking from each other.
2. BFixed costs are very low, allowing companies to easily scale down operations during a market slump.
3. CThe products are highly differentiated, meaning customers are not concerned with price changes.
4. DThere are very few competitors, and they have reached a silent agreement to keep the prices stable.
5. EHigh exit barriers (like massive investment in towers/spectrum) force firms to stay and compete fiercely.Correct