A ___________ competitor is a business that sells different products or services but is similar enough to be competitive with another business.

An indirect competitor is a business that operates in a different product or service category but still competes for the same customer base or overall market share. This type of competitor attracts consumers by offering alternatives that satisfy similar needs or desires. For example, if a person typically buys coffee from a café but decides to visit a convenience store to purchase energy drinks, the convenience store is an indirect competitor of the café.

Indirect competitors are crucial for businesses to consider since they can influence consumer purchasing decisions, even though they do not offer the exact same products or services. Understanding the landscape of indirect competition allows businesses to analyze their market strategies effectively and differentiate their offerings.

In contrast, direct competitors offer the same or very similar products and services, while substitute competitors might provide alternatives that fulfill the same need, albeit in a different way. Adjacent competitors tend to operate in similar markets but generally cover different categories within that market. Recognizing these distinctions helps businesses tailor their marketing and operational strategies more effectively.