Indirect Competition

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Definition: Indirect Competition

Competition among businesses who does not produce similar products or services but fulfil similar needs. Indirect competitors are those who attract same customers but offer different products or services to customers. Businesses should be aware of indirect competitors while designing strategies. As in such kind of competition, business may not directly compete but can be considered as alternatives by customers. They can offer different products or services, can belong to different industries but can compete with each other. This kind of competition is known as indirect competition.

For example-

There are two restaurants one offers pizzas and other offers Indian cuisine – perhaps pizza and Indian dishes- both targets same audience.

Another example can be stated like car rental company in competition with bus services.

It is important for businesses to understand the importance and impact of indirect competitors. Against a indirect competition company delivers message that their product or service is the best solution to their needs over other alternatives available. Indirect competitions are highly influencing businesses and to find out these competitors is not easy. And approach required to compete against so many alternatives is a crucial matter. Indirect competitions are hard to find and way harder to compete against them.


Hence, this concludes the definition of Indirect Competition along with its overview.

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