Etini
Valued Contributor
When it comes to business competition, many business organisations only do analysis for other businesses that offer the exact same products they are dealing with. While that is reasonable, it is not whole because there are indirect competitors too.
Indirect competitors are those businesses that don't necessarily offer the same products or services with your business but they offer products and services that satisfy the same need. In essence, they respond to the same demand that your business responds to.
Examples of indirect competition in the business world is
1) Fast Food Restaurants and Grocery Shops. They all serve the need of soothing the prevalent hunger quickly.
2) Streaming services and movie theatres: The two offer premium movies entertainment to the market.
A business needs to do competitor analysis for indirect competitors because resources of people in the target market is limited. If they turn to to satisfy the utility that your business offers in other ways, your business has lost the money and the patronage.
Indirect competitors are those businesses that don't necessarily offer the same products or services with your business but they offer products and services that satisfy the same need. In essence, they respond to the same demand that your business responds to.
Examples of indirect competition in the business world is
1) Fast Food Restaurants and Grocery Shops. They all serve the need of soothing the prevalent hunger quickly.
2) Streaming services and movie theatres: The two offer premium movies entertainment to the market.
A business needs to do competitor analysis for indirect competitors because resources of people in the target market is limited. If they turn to to satisfy the utility that your business offers in other ways, your business has lost the money and the patronage.
