What term is used to refer to businesses that sell similar products and compete for the same customers?

The term that refers to businesses that sell similar products and compete for the same customers is 'competitors.' This terminology is essential in understanding market dynamics, as competitors are entities that vie for the same market share or customer base.

In retail and other industries, acknowledging who the competitors are allows businesses to analyze their strengths and weaknesses, differentiate their own offerings, and develop strategies to attract customers better than their rivals. This competitive relationship can drive innovation and improve service or product offerings as businesses strive to outperform one another.

In contrast, the other terms listed—partners, allies, and associates—convey a sense of collaboration or cooperation rather than competition. Partners and allies typically indicate a strategic alliance where businesses work together toward common goals, while associates might refer to individuals or entities that are related through business activities but do not necessarily compete directly. Understanding these distinctions is crucial for retailers when crafting their market strategies compared to their competitors.