Posted by: adsighted | February 20, 2007

Direct and Indirect Competitors

Well, let’s face it. Competitions are everywhere. More competitions will definitely boost the industry and drive economics. So, for those who runs a business or those just starting out on your own, you should know who are your “DIRECT” and “INDIRECT” competitors.

Let’s talk on Direct competitors. These can be classified as

  • 1) Offering the same products and/or services as you are offering to your clients and/or customers.
  • 2) Having the same targeted field of clients, customers and/or demographics.
  • 3) Using the same tactics in advertising or bringing news/informations of products/services to your targeted demographics.

A very good example of a DIRECT COMPETITOR will be GOOGLE and YAHOO.

On to Indirect competitors.
These competitors are abit hard to spot as compared to direct competitors. They can be classified as “wanting to have a share of the pie” .
Confused?
Well, an example to show you.

“Let’s say Ahmad opens a shop selling malay rice while the opposite street Ali is selling the same as what Ahmad is selling. Then comes a Chinese, Ah Boon. He set up a store in line with Ahmad and starts selling Chinese fried rice. Though Ah Boon is selling Chinese fried rice, he is consider an “indirect competitor” to Ahmad and Ali as he wants a “share of the pie” in FnB industry.”

So, look around you. Do you know who is you direct and indirect competitors now?


Responses

  1. […] cracking your head now as how to stay ahead and alive in this competitive competition and make your DIRECT COMPETITORS play “catching up” with […]

  2. get owned

  3. thanks for that, that really helped me with my coursework =)

  4. hi that really a good examples of direct competitors but just i wanna know who r the indirect competitors in hairdressing industry iam confused please help me…is myer or target is an indirect competitors?

  5. another question please anyone can help me?List 10 Organizations, other Health Practitioners, other client support groups or Business you might refer your clients too (hair dressing industry).

  6. hello. just want to point out one thing. direct competitors are the competing in the same industry. But if I am correct the indirect competitors are the ones who are in the different industry. I may say, from Ahmad’s point of view the Chinese fired rice restaurant is a direct competitor. Although it is selling different rice they are selling in a same industry. On the other hand, their indirect competitors are the super market. They are selling instant and cheaper food. Restaurants are leisure products. If the house income is low they would not prefer to go out and eat. If they don’t eat outside, they would prefer to make their own meals at home. Things that you can alternate the product is the indirect competitor’s product. in other words something you can substitute in a different industry is the indirect competitors goods and service.

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