Market vs. Industry

industry market entry
New answer on Mar 30, 2020
6 Answers
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Anonymous A asked on Mar 29, 2020

Hello,

while reading the bootcamp articles, especially the "Mergers & Acquisitions" one, I observed that the terms market and industry are used interchangeably. For instance, the article talks about analyzing the target industry and mentions subpoints of market growth, market size...

However, I understand that a market is a geographic entity such as the European market and industry is related to industry sectors such as the chemicalindustry. In case of a market entry situation of a chemical company, I would assume they are interested in elaborating on new geographic markets (we consider entering China, South America...) and not other industry segments, or am I incorrect?

Would appreciate your comments on this?

Best

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Anonymous replied on Mar 29, 2020

Hez A,

I agree that both terms are used interchangeably.

When you analize market / industry you need to have a look at the following:

  • Market size and dynamics (growth rate)
  • Structure, segments and market shares of key players
  • Industry trends
  • Past deals

I hope it helps - I wish you best of luck!

André

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Clara
Expert
Content Creator
replied on Mar 29, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

One of the dimensions arround which feedback is structured in McKinsey is "attention to detail", and one could say that of this you have plenty!

Indeed, altought by the book this terms don´t mean the same, they are used interchangeably in this context.

Don´t overthink it too much, they are both meant to seem the same (e.g., industry, not to much related to the geographic territory)

Hope it helps!

Cheers,

Clara

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Luca
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replied on Mar 29, 2020
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

Dear anonymous,

Well done, this is the critical resoning that you have to develop as a consultant :)

In this case you could be formally right but both terms are used interchangeably. Before doing a wrong assumption that could affect your performance, I would recommend to clarify it with your interviewer.

Best,
Luca

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Francesco
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replied on Mar 30, 2020
#1 Coach for Sessions (4.000+) | 1.400+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 9Y+ Coaching

Hi there,

I agree with the previous comments, often the two terms are used as substitutes although their meaning may actually be different in different contexts.

If you believe the interviewer means geographic markets as for a market entry case but you are not sure, I would clarify that at the beginning as part of the clarifying questions – that would be a legit clarification to ask.

Best,

Francesco

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Adam
Expert
replied on Mar 29, 2020
Ex Bain/ A.T. Kearney: Principal with >10 years global consulting and recruiting experience and >150 interviews

I believe you are over-thinking this. :)

Your first observation is correct...they are used interchangeably.

If you are ever in doubt of what is meant or required in the case interview, then just ask a clarifying question.

Kind Regards,

Adam

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Daniel
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Content Creator
replied on Mar 29, 2020
McKinsey / ex-Interviewer at McKinsey / I will coach you to rock those interviews

Hi! Usually the geography is meant, but just double-check with you interviewer before answering.

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