Inter-industry competition refers to the rivalry between businesses in different industries that offer alternative solutions to the same customer needs. For example, a restaurant competes with a grocery store for consumers' food spending, even though they operate in distinct sectors. This type of competition can influence pricing, marketing strategies, and product offerings across various industries. Understanding inter-industry competition is essential for businesses to identify potential threats and opportunities. Companies must analyze how shifts in one industry can impact others, such as how advancements in technology can affect both the entertainment and telecommunications sectors. This awareness helps businesses adapt and innovate to maintain their market position.