Which term measures the intensity of competitive behavior among companies in an industry?

The term that best measures the intensity of competitive behavior among companies in an industry is the character of the rivalry. This concept refers to the competitive dynamics within the industry, including the degree to which companies compete for market share, pricing strategies, product differentiation, and overall market competitiveness. The character of the rivalry helps in understanding how aggressive firms are in their strategies and how they interact with one another.

In the context of industry analysis, it highlights the level of competition and can significantly impact profitability and strategic decision-making. A strong rivalry can lead to price wars, increased marketing expenses, and innovation as firms strive to gain a competitive edge. Therefore, assessing the character of the rivalry is essential for evaluating the competitive landscape and formulating effective strategies.

Other concepts like the bargaining power of firms, the threat of new entrants, and the threat of substitute products relate to competitive forces but do not primarily focus on the intensity of competition directly among existing firms, which is what character of the rivalry encapsulates.