Thursday, October 25, 2012

Competition based on based on degree of product substitutability

Competition based on degree of product substitutability


There are Four Broad levels

1. Brand competition: A company sees its competitors as other companies that offer similar
products and services to the same customers at similar prices.  Nokia might
see its major competitors as Samsung and  and other manufacturers of mobile handsets
, rather than iphones.
2. Industry competition: A company sees its competitors as all companies that make the
same product or class of products. Thus, Nokia competing against all
other mobile handset manufacturers.
3. Form competition: A company sees its competitors as all companies that manufacture
products that supply the same service. Nokia would see itself competing against
manufacturers of all mobile handsets and , such as laptops, games , desk phones and VOIP.
4. Generic competition: A company sees its competitors as all companies that compete for
the same consumer dollars. Nokia would see itself competing with companies
that sell major consumer durables, foreign vacations, and new homes.

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