What distinguishes direct competitors from indirect competitors?

Direct competitors are distinguished by the fact that they offer the same products or services to the same target market. This means that they are vying for the same customers and market share, making their competition more direct and relevant. For example, two companies that both sell athletic shoes would be considered direct competitors because they provide similar products to the same group of consumers. This competition can lead to price wars, product improvements, and marketing battles as each company aims to attract customers away from its rival.

The other choices do not accurately characterize direct competitors. Alternatives do exist within the realm of indirect competition, but direct competitors specifically provide the same type of goods or services rather than alternatives. The quality of products does not define direct competition; instead, it is about the function and market intent of what is offered. Lastly, while both direct and indirect competitors can operate in similar geographic areas, this is not a defining characteristic that distinguishes them from one another, as indirect competitors can also be geographically close yet serve different customer needs.