Question

Classify the following pair of products, services, or companies as direct competitors, indirect competitors, or noncompetitors.

- Two different brands of basketball shoes


- A can of soda pop and a calculator


- Potato chips and rice cakes


- A baseball cap and a straw hat


- A video game and a lawn mower


- A hardware store that sells batteries and a grocery store that sells batteries

Answer 1

Direct competitors - When two or more companies offer a similar product, they are competing for the same potential market.
Indirect competitors - Products vary between two or more companies but their products could substitute for a consumer and fulfill their needs.
Non-competitors - Products are different and can not substitute for one another making the company products not competitive.

1) Two different brands of basketball shoes direct competitors
2) A can of soda pop and a calculator non competitors
3) Potato chips and rice cakes indirect competitors
4) A baseball cap and a straw hat indirect competitors
5) A video game and a lawn mower non competitors