What is the difference between direct and indirect competition?
Direct competition would be someone who competes against you openly, selling essentially the same thing. Indirect competition would be someone selling a substitute which might be usable. I think McDonalds, Burger King and Wendys would be in direct competition for each other. Pizza Hut, Dominos and Papa John’s would also be directly competing with each other. But I think it’s arguable that Pizza Hut and McDonalds are only indirect competitors because while, they are both essentially fast food places, people looking for one usually are not looking for the other. (When you want a burger you’re usually not thinking of pizza. Now, if MickeyD’s starts selling pizza then that argument changes.) I do think they qualify as indirect vs. direct because it is possible to substitute one for the other. Or perhaps a comparison between Subway Sandwich Shops and Quiznos Sandwiches is a direct competition, but indirect would be between Quiznos and a Chinese Restaurant. I think that when someone is consi