indirect (adjective, in-di-rect, \ ˌɪndəˈrekt \) competition (noun, com-pe-ti-tion, \ ˌkɑːmpəˈtɪʃn \)
Definition: is a type of competition that occurs between two enterprises producing different products but both aimed at identical customer needs. For instance, a sushi place is an indirect competitor of a pizzeria, because even though they sell different types of food, they fight over the same target audience – “a hungry person.” When devising its strategy, a company should always factor in any potential indirect competition in order to objectively predict the sales figures in a specific market.
In a Sentence:
- My friend’s start-up went bankrupt within two years of its launch because he forgot to account for indirect competition.
- Open Time has spent a considerable amount of time researching indirect competition in Italy before opening an office there.
- It turned out that bicycle selling companies were a part of our indirect competition that we didn’t think about when creating our business strategy.
Synonyms and related words: interchannel competition, direct competition, indirect marketing, indirect method