Category killer

Posted in Marketing and Strategy Terms, Total Reads: 4904
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Definition: Category killer

A category killer is the dominant company/ brand in an industry or product/service category which accounts for a major portion of the sales in the category. It may have developed competitive advantage over a period of time which other companies find it difficult to replicate. As a result, other companies in the same product category not only find it difficult to compete with the brand killers but may also find it more viable to exit the business altogether. Retail giant Wal-Mart can be referred as a category killer as other retailers find it hard to compete with its low prices resulting of its well-developed business model. The category killers have a high concentration ratio and may have a near –monopoly as they are the preferred choice for majority of the customers.

Example : Apple iPad is termed as a category killer at times as other tablet makers are not able to compete at all and iPad is synonymous with the term Tablet PC.


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