Group 8Question 5 – Chapter 3February 10, 2010Explain the four types of competition discussed in the chapter. Why is it important to recognize these different forms of competition?The first main type of competition is horizontal competition. This is between the firms of the same type such as manufacturer with manufacturer and retailer with retailer. This type of competition is the most visible and is the most discussed form. The other name it is known as is just “competition” since it is so commonly talked about. The second type of competition is intertype competition. This is between different types of firms at the same channel level. For example this would be the discount store versus the department store. The book gives a good example of the office superstores and the neighborhood stationary stores. The office superstores compete with the neighborhood stores on a retail level but they would also be an example of category killers. A third example of competition is vertical competition.
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