Final answer:
Dominating distribution channels is a viable way for companies to create a competitive advantage by enhancing product availability, logistics, and customer service, ultimately influencing market share and profitability.
Step-by-step explanation:
Dominating channels of distribution can indeed be a method for companies to gain a competitive advantage in the market. This is because control over distribution channels can allow a company to ensure better product availability, tailored logistics, and improved customer service, which can differentiate the company's products or services from its competitors. Companies that effectively control their distribution channels can streamline operations, potentially reduce costs, and ensure that their products are delivered to consumers efficiently. In highly competitive markets, the ability to leverage distribution channels can make a significant difference in market share and profitability.
However, dominance in distribution channels must always comply with legal and ethical standards to prevent anti-competitive practices like monopoly, which is described as the opposite extreme of perfect competition.