A ____________ competitor is a business that sells similar products or services as another business.

A direct competitor is a business that offers the same or very similar products or services as another business. This means that both companies target the same customer base and fulfill similar needs, which often leads to competition over market share, pricing strategies, and marketing efforts.

In a market where multiple businesses compete for the same customers, understanding who the direct competitors are is crucial for strategic planning. Companies often analyze their direct competitors to identify strengths, weaknesses, opportunities, and threats, commonly referred to as a SWOT analysis. This focus helps businesses refine their value propositions, improve customer service, and differentiate themselves in the marketplace.

Indirect competitors, on the other hand, offer different products or services but can still satisfy the same customer's needs. Complementary businesses provide products that go along with another product but are not in direct competition, while potential competitors may enter the market in the future but do not currently provide the same products or services. Understanding the dynamics of direct competition allows businesses to develop strategies that create a competitive advantage.