SIMILAR.
You own a pizza store in town. Another pizza store would be your competition because it offers SIMILAR products.
Competition occurs between businesses when said businesses offer the same services to the same target market. Since both stores offer pizza in the same town, then they are in competition with one another.
Their services or products offered is pizza. Their target market is the same town.
There would not be any competition if both pizza store operate in different towns, thus not jeopardizing their potential consumer base and potential income.