At the corner of 9th Street and Passyunk Avenue in South Philadelphia, there are two rival sandwich shops, Pat's King of Steaks and Geno's Steaks, both of which are famous for cheese-steak sandwiches. What kind of competitors are Pat's and Geno's to each other?
A. They're not competitors.
B. Indirect
C. Replacement
D. Direct
Answer (2)
Pat's King of Steaks and Geno's Steaks are direct competitors because they both offer cheese-steak sandwiches to the same customers in the same location. They are located near each other in South Philadelphia, directly competing for the same market. Thus, the correct answer is D. Direct.
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Pat's King of Steaks and Geno's Steaks are direct competitors. Direct competition occurs when two or more businesses offer similar products or services to the same set of customers. In this case, both Pat's and Geno's serve similar products, specifically, cheese-steak sandwiches.
Who: Pat's King of Steaks and Geno's Steaks are the two businesses in question.
What: They are both eateries known for their cheese-steak sandwiches.
Where: These establishments are located at the corner of 9th Street and Passyunk Avenue in South Philadelphia.
Why: The reason they are considered direct competitors is because they both aim to attract the same customer base by offering nearly identical food items within close proximity.
How: As direct competitors, Pat's and Geno’s often compete on various aspects such as taste, price, service quality, and brand loyalty to maintain and expand their customer base.
Choosing Direct as the multiple choice option highlights their competitive relationship, which is primarily due to the similarity in their menu offerings and their location being right next to each other, intensifying the competition.
