Indirect Competition: Strategic Considerations

Competition theorists have begun to explore competitive behavior that minimizes rivalry and head-to-head confrontation, a competitive style referred to as "indirect competition." This theoretical expansion provides a more comprehensive explanation of competitive behavior in the marketplace and offers managers a greater array of competitive options from which to choose. Three kinds of indirect competition are discussed: maintaining a low profile, avoiding head-to-head competition, and redefining the battlefield. Though perhaps best exemplified by Chinese business practices, indirect competition is relevant to managers worldwide. The benefits of competing "unconventionally" (according to prevailing Western standards) can be numerous and unexpected.