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.