Businesses compete with one another for customers.

Businesses must be aware of what competitors are doing so that they can keep up with the competition.

​What is competition?

​There are two types of competition:
1) Direct Competition
2) Indirect Competition

Types of Business Competition

​Sells the same or similar products to your business.

​​Direct Competition

​Sells products from different categories, but which meet the same needs and wants of customers.

​​Indirect Competition

Burger King and McDonalds are Direct Competitors

They sell similar goods and services.

Arcade Planet and Golden Village Cinemas are indirect competitors.

They sell different goods and services but meet the same needs and wants of customers. (Entertainment)

Some businesses are not competitors.

They sell different goods and services and meet different needs and wants of customers.

Uniqlo and Unity Pharmacy are not competitors

They sell different goods and services and meet different needs and wants of customers.