Which of the following statements about competition is TRUE?

Indirect competition indeed satisfies the same customer needs, which is why this statement is true. In business, competitors do not always offer the exact same products or services. Instead, they can meet similar needs in different ways. For example, a fast-food restaurant and a convenience store both provide quick meal options, satisfying the same customer desire for convenience, even though they operate in different business sectors.

Understanding this distinction helps businesses strategize their marketing and operational approaches. Recognizing indirect competitors can lead to more effective responses to market trends and consumer demands, as companies learn to differentiate their offerings or enhance customer experience in ways that appeal to those shared needs.