Who is your competitor?
I think a market is defined by users and customers, and competitors are defined by the perceived use or purpose of a product/service (by the users/customers). This is a quite wide and broad definition of competition, and can lead to define libraries as competitors of cinemas.
The rationale behind this is quite simple. The purpose of watching a movie is in many casis perceived as having a good time, killing time, having an entertaining experience. In many cases you decide you want to spend sometime at the cinema, and you look at the movie roster to pick up the one the suits your tastes.
The purpose of going to a library is usually buying a book. Some people actually read books there, one page at a time, but there is hardly any economic justification for doing this.
But if you add a coffee shop and some sofas, then all of a sudden you can kill time at the library, and you can have a really good and entertaining experience. You could decide to go to the library, choose the book that suits you, buy your coffee, find a nice spot and enjoy an hour or so sipping your coffee and reading your book.
To such a point that when you wake up Saturday morning, you might consider spending time at the library as an alternative to watching a movie in the afternoon. And this would make a library (with a coffee shop) a competitor to a cinema.
It might be a bit over the top, I admit it, but I think it captures the idea that what defines a market and its competitios are the trade offs that people consider when taking a decision about spending time, money and energy. And the main focus is not necessary around products, it can well be around purposes, expectations and experiences.
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