1. Draw a detailed diagram (concentric circles or a table) showing the four levels of competition for Under Armour HOVRTM, a 'smart shoe' or connected shoe with a microchip that connects to the UA app.. List as many competing products/brands within each level of competition that you can think of, and label the different labels (e.g., what is the product category; what is the generic competition?)

 

 

t+1    A                               B                         C                         D					E
A	0.5	0.0	0.2	0.0		0.3
t     B	0.1	0.5	0.1	0.2		0.1
C	0.3	0.0	0.4	0.3		0.0
D	0.1	0.0	0.0	0.9		0.0
E	0.3	0.0	0.3	0.0		0.4

 

Given the brand switching matrix shown in the above table:

What can you infer about the structure of competition between brands A, B, C, D and E simply by eyeballing the switching probabilities in the matrix? Draw a tree diagram showing close competitors on the same branch of the tree and explain your diagram. Do not refer to the names of the brands listed below; simply base your answer on the numbers.

Suppose the product market described by the switching matrix is that for breakfast cereal and A = Frosted Flakes, B = Rice Krispies, C = Corn Flakes, D = Cap'n, Crunch , E = Kashi 7 Grain Flakes . Knowing this information about the brands, are you surprised at the closeness of competition between the brands or is it what you expected? Refer to the '4 levels of competition', focusing on the two inner circles of product-form competition and product category competition.

      Hint: Cap'n Crunch is a sugary cereal meant for kids; Kashi is considered a relatively healthy and high fiber cereal for adult women; Frosted Flakes has high sugar.