Industry And Segment

Question 1

Industry
Segment
Market

Answer 1

Here are the smart notes:

Markets

• A market is a place where buying and selling takes place.
• Markets can be defined by:
  
  • Products/services sold
  • Customers/potential customers
  • Geographical area
• Markets can be global or localized.

Industries and Sectors

• An industry consists of suppliers producing similar goods/services.
• Examples: aerospace, automobile manufacturing, construction, travel, leisure, insurance.
• An industry segment is a separately-identifiable part of a larger industry.
• Examples: automobile industry (assembly, parts manufacture), insurance industry (general, life assurance, pensions).

Strategic Decisions

• Companies must decide which industry/segment to operate in.
• Companies must decide which market(s) to sell goods/services in.

Products vs. Markets

• Different industries might sell to the same market.
• Same industry might not compete due to different markets.

Analysis of Strategic Position

• Management must recognize industries, segments, and markets they operate in.
• Management must recognize changing conditions to decide future product-market strategies.