Both Industry and Market are often construed. The market works on the principle of demand and supply, while the industry is a market component that renders specific services depending on the trends, accessibility, and choices.
Key Takeaways
- The industry refers to a specific sector of the economy involved in producing or manufacturing goods or services.
- Market refers to the exchange of goods and services between buyers and sellers and the conditions that affect the trade.
- The industry is focused on producing or manufacturing goods or services, while the market is focused on exchanging those goods or services.
Industry vs Market
Industry is a group of companies or organizations that produce similar goods or services. For example, the automobile industry is made up of companies that produce cars. A market is a physical location where goods or services are bought and sold, such as a farmers’ market, a stock market, or a shopping mall. In economics, a market is overall demand for and supply of goods or services.
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To simplify, the market is 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, and commodities that are to be transacted in the market.
Comparison Table
| Parameter of Comparison | Industry | Market |
|---|---|---|
| Deals with | Producer | Consumer |
| Concerned with goods | One particular market or firm | Various goods and products are purchased |
| Presence | In Actuality | It can be virtual, E-selling and, in Actuality |
| Competition | Among various other industries | Exists between various industries, buyers and sellers. |
| Classification | Maximize sales and profit | Product and Factor Market |
| Approach | Competition | Sales |
What is Industry?
The industry is an operational chain of firms, more or less similar to each rendering services through offering goods, services, and commodities. An industry is a distinct group that acts as a producer and manufactures products through labour and creative processes.
For example, Automobile, banking, agriculture, aviation, and textiles are all called industries, an overarching umbrella term. Industry relates to the country’s overall economy and can be privatized and under government regulations as well.
What is the Market?
A market is 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.
Main Differences Between Industry and Market
Producers and Consumers
An industry is a place where products are produced. Companies like Tata cement and Ambuja cement are cement producers and deal with the same business activities.
They deal with the cement industry.
They produce cement. At the same time, the same cement would reach out to different geographical places through different transportation, wholesaler, retailers, warehousing, and shop channels. Industry deals with products and 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, and be marketed in different locations and portals but are restricted to a zone or a category of products. For Example, the 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 digitalization. In our local markets, we find the pharmacy, grocery, retail shops, and jewellery stores, and the market list 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 sellers giving products on a lesser profit margin to retain the goodwill and customers. The industry’s approach is restricted to ownership, profits, and visibility through advertising, marketing, publishing, etc.
The market mainly wants to sell their wholesale or retail products by understanding local customers’ needs, like, using, eating, and buying. Market stresses on understanding the factors that incline customers to come back.
It can be a competitive price, accessibility, varied choices, market locale, etc.
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 money is at stake. For example, Airlines like Kingfisher closed down and incurred losses not just to the owner but also to the nation.
The same goes for Air India. Both airlines failed the aviation industry.
Industry, be it the private or public sector in nature, affects 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 the industry and relatively easy in the market.
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
