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Direct competition differs from indirect competition, in which two or more businesses offer products or services that, although significantly different, can fulfill the same consumer need or at least part of the need. Product differentiation is often used to reduce direct and indirect competition. The goal of a differentiation strategy is to show that a company's product is different from others in the category and that it is superior to them in terms of design, quality, price, features and/or support.
For example, Apple's iPhone is in direct competition with Samsung's Galaxy in the smartphone market.
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