Final answer:
Quality affects the degree of rivalry in the business industry as firms lacking quality are likely to be more aggressive in their competitive actions until quality problems are resolved.
Step-by-step explanation:
Quality affects the degree of rivalry in the business industry. Firms that lack quality are more likely to be aggressive in their competitive actions until their quality problems are resolved. This is because customers are more likely to choose firms with better quality products, which can lead to a decrease in market share and profits for firms with lower quality products. For example, a restaurant with consistently bad food quality may receive negative reviews and lose customers to competitors with better quality food.