Every time we are talking about business, two terms seems to be popping up, market and industry, while any conversation involving any kind of business can’t be completed without these two.
On the other hand, if you have ever written a business plan, then you have probably encountered the sections for industry analysis, as well as market analysis, and they can be quite confusing.
But, keep in mind that there is a clear difference between these two terms, even though they might appear the same. For that reason, we are going to explain the most common differences between market vs industry and help you understand what they stand for.
Industry
Industry is focused on a lot of companies that design and manufacture a particular type of product. On the other hand, some businesses are involved in offering a specific service to a general population. Together, they all make one industry.
Although the companies are more or less the same, different industries contain a different structure and number of businesses. For example, we have movie industry, music industry, fruit industry, and so on.
The members of one industry must follow the strict quality control while building one products. For that reason, we have flawless substitutes of products, and customers can choose between various companies. On the other hand, some firms may offer slightly different products, which isn’t an exact math, or an identical substitute, but rather an alternative.
However, they are all involved in creating the same product or its alternatives, so they are part of one industry. Considering that economical concept of industry focuses on manufacturing and sale of a particular category of goods, the entire system is monitored and regulated according to the latest market trends and updates.
Environmental protection and security, as well as technological interventions are some of the factors which must be taken into an account while producing goods.
Market
Nowadays, the term “market” is quite flexible and may range in concepts. However, to put it simply market is a place, virtual or physical one, where buyers and sellers meet to trade. This exchange can happen directly, or through a middleman. You may have noticed that there are countless market places across the globe.
Therefore, markets may vary in their nature, purpose, size, structure, and so on. On the other hand, market can also represent a group of clients. For instance, when we talk about the market, we usually focus on a specific product and its demand.
Each product and service is part of the market in which competes with similar goods and services. Additionally, they are all involved into marketing and promotion, so that finally the purchase can take place. Of course, the customers want a product that has the highest quality, easily accessible, lowest price, upfront customer service, and so on.
However, you need the understand that driving sources behind every market are supply and demand.
Differences
Meaning – industry represents a large number of companies which manufacture a particular product or provide a specific service, while market is the place where buyers and sellers meet.
Concept – concept of market and industry significantly differs. In most case, market is created by demand, considering it creates a crucial link between goods and its consumers. However, manufacturers develop industry.
Technological effect – tech breakthroughs, as well as innovative strategies can completely change and revolutionize one industry. But, when it comes to market, the only participants are sellers and buyers, and they are the only ones that react to these changes.
Variety of products – while market focuses on a vast amount of products, industry focuses on one single product.
