Direct and Indirect:

Competitors
Identifying your competition
Accurately identifying and understanding your competition
allows you to adapt and differentiate your product and services
to improve your competitive position

Two types of competitors

1. Direct Competitor
2. Indirect Competitor
Direct Competition
refers to two or more businesses offering the same products
or services to the same target market.

Indirect Competition
occurs when another business offers a different product that
could substitute your product and satisfy your customers’
needs and goals.
Direct Competition
refers to two or more businesses offering the same products
or services to the same target market.

Direct Competitors
1. Sell the same products and services
2. Products compete on features, pricing, and quality
3. Same ideal customer in a target market
Indirect Competition
occurs when another business offers a different product that
could substitute your product and satisfy your customers’
needs and goals.

Indirect Competitors
1. Sell different products and services that can act as a
substitute for your product
2. Products compete on convenience, availability, and brand
recognition, and prices may vary significantly
3. Meet the same needs and goals