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6

Market vs. Industry

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

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

6 answers

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Best Answer

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

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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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

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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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

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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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

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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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

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

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

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