efforts by the marketers within a channel of distribution, or by channels as a whole, to establish dominance over the others. For example, the restaurants in a downtown district compete with each other for customers as well as for the best locations and suppliers. The same restaurants also compete as a group against home/office meal delivery services. A restaurant can gain an advantage by differentiating itself from the rest of the competitors in the channel. For example, it might offer a formal lunch club open to members only or guaranteed 15-minute service for informal lunches. It can be difficult for a marketer to determine when a company that used to be part of a different distribution channel becomes a competitor within the same channel, such as in the case of Sears versus Wal-Mart or Continental versus Southwest Airlines.
Definition of channel competition
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efforts by the marketers within a channel of distribution, or by channels as a whole, to establish dominance over the others. For example, the restaurants in a downtown district compete with each other for customers as well as for the best locations and suppliers. The same restaurants also compete as a group against home/office meal delivery services. A restaurant can gain an advantage by differentiating itself from the rest of the competitors in the channel. For example, it might offer a formal lunch club open to members only or guaranteed 15-minute service for informal lunches. It can be difficult for a marketer to determine when a company that used to be part of a different distribution channel becomes a competitor within the same channel, such as in the case of Sears versus Wal-Mart or Continental versus Southwest Airlines.
