Answer :
A) According to the Five Forces framework, a seller's existing competitors determine the level of competition.
The Five Forces framework, developed by Michael Porter, analyzes the competitive forces that shape an industry's attractiveness and profitability. One of these forces is rivalry among existing competitors. This force examines how intense the competition is among the current players in the market. Competitors impact the level of competition through factors such as price competition, product differentiation, marketing strategies, and customer loyalty. The stronger the competition among existing competitors, the higher the level of rivalry and the more challenging it becomes for a seller to differentiate themselves and gain a competitive advantage. While other forces, such as buyer power, supplier power, the threat of new entrants, and the threat of substitutes, also influence the competitive landscape, it is the existing competitors that directly determine the level of competition a seller faces in the market.
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