Question

Which of the following is an indirect competitor for a company that makes chocolate chip cookies? A. Another company that makes chocolate chip cookies B. A company that makes potato chips C. A company that makes baking pans D. A company that makes brownies

Answer 1

Answer:

D. A company that makes brownies

Explanation:

Indirect competition is also known as substitute and it typically refers to the business conflict between producers (sellers) whose goods and services are quite different (usually not the same) but basically has the ability to satisfy customer needs. This ultimately implies that, an indirect competitor is a product found in a different category but is considered to be an alternative choice or substitute because it can meet or give satisfaction to a customer.

Hence, an indirect competitor for a company that makes chocolate chip cookies is a a company that makes brownies. Other examples are coffee and mineral water, coke and smirnoff ice etc.