Question

I am considering buying a new sports car like a Ford Mustang. Another sports car that would not likely compete head-to-head like the Audi R8, which is at a significantly higher price point, best represents which type of competition? radio_button_unchecked Brand competition radio_button_unchecked Industry competition radio_button_unchecked Generic competition radio_button_unchecked Form competition SUBMIT

Answer 1

Brand Competition

Step-by-step explanation:

Brand Competition arises when two or more different companies offer a similar product, under a different brand. The products are similar, but not fully substitutes: they can be distinguished in some way: quality, features, price, and so on.

In this case, what makes the Ford Mustang and the Audi R8 is the price. The Ford brand is significantly cheaper than the Audi brand, which might give Ford the upper hand in market share. However, this is not always the case because the Audi car could have the upper hand when it comes to quality, and obtain more marke share because of that.