Analyzing Indirect Competitors: Unveiling Hidden Opportunities for Growth

When it comes to competition, most businesses focus solely on their direct rivals — those
offering similar products or services to the same audience. But what about the competitors you
don’t see coming? Indirect competitors, while less obvious, can quietly influence your market
share and consumer choices. Learning to identify and analyse them can open up powerful new
avenues for growth.

What Are Indirect Competitors?

Indirect competitors are companies that offer alternative solutions to the same problem your
business solves, but in a different way. For example, a gym’s direct competitors might be other
gyms, while its indirect competitors could include home fitness apps, personal trainers, or even
wellness YouTube channels.

These players may not be in the same industry, but they’re competing for the same time, money,
or attention from your target audience.

Why You Should Care

Ignoring indirect competition is a common mistake — and a risky one. They can disrupt your
industry, shift consumer behaviour, or introduce innovative solutions that render your offerings
less relevant.

By studying indirect competitors, you gain a broader view of the customer journey and spot
opportunities to reposition your brand, diversify your offer, or improve customer experience
before market trends force you to.

How to Identify Indirect Competitors

• Look Beyond the Obvious: Think about what else your customers might consider
  doing to achieve the same goal. If you sell coffee machines, an indirect competitor might
  be a subscription coffee delivery service.
• Use Social Listening Tools: Monitor conversations online to see which alternatives
  customers are discussing or choosing over your product.
• Survey Your Audience: Ask your customers what other solutions they considered —
  their answers often reveal competitors you hadn’t noticed.
• Analyse Behaviour Patterns: Use Google Trends or customer data to identify shifting
  preferences and rising alternatives.

Turning Insight into Opportunity

Once identified, indirect competitors can inspire innovation. Ask:

• Can we create a new product or feature to bridge the gap between our solution and
  theirs?
• Can we borrow marketing strategies from their success?
• Is there potential for a partnership or cross-promotion?

You may even discover new market segments worth targeting — those who are not yet using
your product but could, with the right positioning.

Final Thoughts

In today’s fast-evolving landscape, the most successful companies are those who look sideways
as well as forward. By analysing indirect competitors, you not only protect your market position
— you uncover fresh opportunities for innovation, differentiation, and long-term growth.