Direct Competition: It refers to the competitions in which various enterprises producing close substitutes try to increase their sale of their product. Each tries to enhance its sale and tries to capture maximum possible consumers of the market e.g. Luxor, Flair, Camlin etc. are the companies which produce substitutes and each tries to capture maximum consumers of pen and other stationery items. Indirect Competition: It is a type of competition in which the enterprises compete not only for price but other references about the product. It is also referred as non price competition, e.g. Coca-Cola and Pepsi compete with each other in advertisements for persuading the customers. Any new advertisement of one company is normally followed by a fresh advertisement by another company.