What does indirect competition refer to?

Indirect competition refers to businesses that sell different products or services but are competing for the same customers. This means that even though the products or services offered are not the same, they satisfy similar needs or desires among consumers. For example, a coffee shop and a bakery may not sell the same items, but they both appeal to customers looking for a quick snack or a treat, thereby indirectly competing for the same clientele. This broadens the understanding of competition by highlighting how companies can impact each other's sales even if their offerings differ.

In contrast, other options focus on different forms of competition or business relationships. Identical product competitors deal with businesses offering the same products, which represents direct competition. Firms operating in different countries might not be competing in the same market space, and those sharing market resources may collaborate or operate cooperatively rather than compete against each other directly.