Industry vs. Target Market

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Industry vs. Target Market
IndustryA group of firms producing a similar
product or service, such as airplanes, music,
electronic games, or fitness club
memberships. Target MarketIs the limited
portion of an industry that a firm goes after or
tries to appeal to.

• ExampleFirm started to produce a new type of
  pesticide for orange trees.
• Target MarketOrange tree growers
• IndustryPesticide industry in general
• Is the industry large or small?
• Is it growing or shrinking?
• Is it dominated by large firms or small firms?
• How profitable is it?
• What are the current trends in the industry?

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Example Womens Boutique Clothing Industry
(Success tied Directly to Trends in Broader
Womens Clothing Industry)

• The industry is growing
• As more women have entered the workforce, the
  demand for business attire has
• increased
• Opportunities are increasing for womens
  clothing retailers to compete in niche
• markets such as petites, plus-sized clothing,
  evening wear, casual wear, sportswear, and
• upscale clothing.
• The industry is made up of a large number of
  small companies.
• The capital costs associated with opening a
  single store are relatively low.
• The only barriers to entry associated with
  opening a single store are brand awareness
• and the level of competition in the local
  area.
• Mass merchandisers tend to focus their
  offerings on younger women, whereas
• boutiques tend to focus on middle-aged and
  older women who tend to have more
• discretionary income. In addition, older
  women have the most trouble finding the
• right clothes, making the personalized service
  offered by boutiques attractive.

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Environmental Trends and Business Trends
Trends That Favor the Fitness Center Industry

• Americans are increasingly aware of the need
  for exercise, weight control, good
• nutrition, and a healthy lifestyle among both
  adults and children.
• Nationwide economic conditions are strong,
  which boosts consumer confidence and
• makes it easier for industry participants to
  borrow money.
• An increased emphasis on wellness is evident
  across many sectors of society. In
• particular, positive press about the benefits
  of yoga, Pilates, and similar activities cause
• people to seek out businesses that offer those
  services.
• The increasing costs of other sports and
  recreational activities such as golf and
• boating can result in people opting out of
  those activities in favor of joining a fitness
• club or other recreational sports center.
• Increasing health care costs are motivating
  corporations to invest in corporate
• wellness programs. Many corporations now
  support their own fitness centers or offer
• fitness center memberships as a benefit.
• The SliverSneakers Fitness Program allows
  Medicare-eligible people to join a
• participating fitness center at no cost.

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Environmental Trends and Business Trends
Trends Working Against the Fitness Center Industry

• Leisure time is becoming less available.
  Time-strapped consumers find it harder to
• make time to frequent a fitness center.
• Increasing prices for gasoline and health care
  are lowering consumers disposable
• income.
• Americans are becoming more and more obese,
  with 34.1 percent of all adults aged
• 20 to 74 considered overweight. Many of these
  individuals may not see themselves as
• fit enough to work out.

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