What characteristic defines a category killer?

A category killer is defined by its dominant market share in a specialized category, typically achieved by offering a wide selection of products at competitive prices. This dominance allows it to overshadow smaller competitors, making it the go-to destination for consumers seeking products within that category. The strength of a category killer lies in its ability to leverage economies of scale, which not only allows for lower pricing but also enables the business to stock a comprehensive range of items, thereby meeting diverse customer needs effectively.

In contrast, a limited selection of products, high prices, or poor customer service would not foster the type of market dominance that characterizes a category killer. Instead, these traits could hinder a company’s ability to attract and retain customers in a competitive marketplace.