More on Indirect Competition

question: 

What is indirect competition? What are some examples?

Answered this question a month ago: See Indirect Competition

However, let me offer a little more concise answer here.

Competition is just a comparison. In business, competition is a comparison among all the different ways a given customer can spend his or her money. A dollar can be spent on a plane ticket, an electric bill, or a candy bar. These could all be considered “indirect competitors”.

Your “direct competitors” are not necessarily your real competition. The biggest problem is always being ignored, not even considered as a target for a competitor’s dollar. Your direct competitors can actually help you here. For example, restaurants do better in areas with other restaurants. The competition draws business and attention.

The most deadly indirect competitors take away the need for your product by without making a competing product. The competition for a TV network isn’t other networks. It is streaming.

Good strategy focuses on winning customers, not beating competitors. If your business is winning more customers and you know why, you don’t have to worry about competitors.