Your direct competitors are businesses that offer value, products, and services as you do. For instance, Pepsi Vs Coca-Cola. Large firms aren't the only ones who compete directly. Two bakeries in a town compete directly to broaden the number of buyers. Indirect competitors sell different products though they are in the same category. For example, two mobile stores one for iOS and one for Android. They both sell smartphones but to distinct types of customers. A replacement rival offers a product or service that is similar to yours.