Difference Between Industry and Market

Both Industry and Market are often construed. The market works on the principle of demand and supply while the industry is a component of the market that renders specific services depending on the trends, accessibility, and choices.

Industry vs Market

The difference between Industry and Market is that the industry is a business model regulated by governance, while a market is driven by the demographics, customer preferences, and correlating distribution channels. Both are driven by consumerism and demands.

Industry vs Market

To simplify, the market is a place where the buyers and sellers can operate and function in a systemic pattern of negotiating and cracking deals. The industry is the producer of specific goods, services, commodities that are to be transacted in the market.

Comparison Table

Parameter of ComparisonIndustryMarket
Deals withProducerConsumer
Concerned with goodsOne particular market or firmVarious good, products are purchased
PresenceIn ActualityCan be virtual, E-selling and in Actuality
CompetitionAmong various other industriesExists between various industries, buyers and sellers.
ClassificationMaximize sales and profitProduct and Factor Market
ApproachCompetitionSales

What is Industry?

The industry is an operational chain of firms, more or less similar to each rendering services through offering, goods, services, commodities. An industry is a distinct group that acts as a producer, manufactures of products through labor and creative processes.

For example, Automobile, banking, agriculture, aviation, textiles are all called industries; an overarching umbrella term. Industry relates to the overall economy of the country and can be privatized and be under government regulations as well.

Industry

What is Market?

A market is a place where the buyer and seller sell or exchange goods on agreed deals and monetary exchanges. The parties involved in the market can be more than two.

For example, a fruit vendor might reach out to someone in the Uttarakhand region to buy beetroots and reach a vendor in south India to buy fresh coconuts.

He then sells both beetroot and coconut in his or her area of residence. Markets can be primary, secondary and tertiary as well.

Market

Main Differences Between Industry and Market

Producers and Consumers

An industry is a place where products are produced. Companies like Tata cement, Ambuja cement are producers or cement and both deal with the same business activities.

They deal with the cement industry.

They produce cement. While the same cement would reach out to different geographical places through different transportation, wholesaler, retailers, warehousing, shop channels. Industry deals with products, commodities while the market is a dealer in those accessibilities.

The dealing of industry functions on market demands.

Goods and Services

An industry creates products that constantly need to compete, roll out, marketed in different locations, portals but are restricted to a zone or a category of products. For Example, a pharmaceutical industry will be many in numbers and all will only make medicines and not produce confectionary.

An industry has to be stationed while the market can move, shift and thrive through the means of digitalization. In our own local markets, we find the pharmacy, grocery, retail shops, jewelry store and the list of the market is endless.

Classification and Approach

The industry is narrow while the market is huge. The industry requires cores of investment while the market survives on the neck to neck sale.

By neck to neck, it connotes to sellers giving of products on a lesser profit margin to retain the goodwill and customers. The industry’s approach is restricted to ownership, profits, visibility through advertising, marketing, publishing, etc.

The market mainly wants to sell their products either on wholesale or retail by understanding the pulse of what the local customers needs, like, use, eat, buy. Market stresses on understanding the factors that incline customers to come back.

It can be a competitive price, accessibility, varied choices, market locale and more.

Presence and Competition

Both Industry and Market compete to sustain and survive. But the competition in the industry has high hazards as a lot of monies are at stake. For example, Airlines like Kingfisher closed down and incurred losses not just to the owner but to the nation as well.

The same goes for Air India. Both airlines failed the aviation industry.

Industry be it private or of the public sector in nature, they do affect the overall economy of the country Markets like travel agencies, online portals, and home-based ticketing agents didn’t close down. They did have other airlines to sell and market them.

Presence and competition both go hand in hand. It’s right to say that the competition is harder to sustain in industry and relatively easy in the market.

Difference Between Industry and Market
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