Definition: Direct Competitor

What is a direct competitor?

Direct competitors are businesses that offer similar products or services and target the same customer base as another company. These competitors are in the same industry and compete directly with each other for market share, revenue, and customers.

For example, two Italian pizza restaurants in the same neighborhood would be direct competitors since they offer the same type of product (pizza) and cater to the same target market (customers who want pizza). However, if one were to specialize in pizza while the other sells only pasta, they would be referred to as indirect competitors because they are not offering the exact same product or service but are still competing for customers in the same general market (Italian food).