generic (noun, ge-ner-ic, \ dʒəˈnerɪk \) competition (noun, com-pe-ti-tion, \ˌkɑːmpəˈtɪʃən \)
Definition: is a type of market competition that exists between different products or services that are manufactured and provided by different companies, but serve the same purpose and provide identical benefits or utility for the consumer. To stay competitive in a generic competition, companies are generally required to cut costs and broaden their distribution channels. For example, a generic competition exists between various flash drive, duct tape, or microwave oven manufacturers.
In a Sentence:
- The generic competition on the paper supply market is fierce, as most competitors have reached the lowest price points they can offer and they’re still struggling to find enough clients for their products.
- It’s quite common for Indian and Chinese manufacturers to win the generic competition for most household items if a country's government doesn't strictly regulate the import rules.
- If you’re planning on entering the headphones market, be aware that it’s an unforgiving generic competition field.
Synonyms and related words: generic brand, monopolistic competition, generic product, intrachannel competition
