With the help of an example, explain why a company's competition may not be from companies in the same category.
Answer: Category membership includes the products or sets of products with which a brand competes and which function as close substitutes.
After having spent billions of dollars building their networks, cell phone carriers AT&T, Verizon Wireless, and Sprint face the threat of new competition emerging as a result of a number of changes in the marketplace: Skype and the growth of Wi-Fi hotspots, municipal Wi-Fi networks built by cities, and dual-mode phones that can easily switch networks.