Direct competition refers to companies in the same industry as your business that offer similar products and services. To capture customers and earn revenue, you need to develop and promote the specific benefits of your solution that are distinct from those of direct competitors.
The difference between a direct competitor and an indirect competitor is the nature of the products and services. An indirect competitor offers substitute products or services, but not similar ones. A direct competitor for a movie theater is another theater or a movie rental store. An indirect competitor is a local swimming pool, which competes for consumer entertainment dollars.