Industry Champion, or a market player?

In over a decade of consulting, I’ve learned to take nothing for granted. I don’t assume as much as I used to, and I try my best to listen to every new client as if they are my first, and I know nothing about their company, industry or market. However, time and time again, in experience I previously had, shows me that almost everyone I talk to is an Industry player. I don’t want to assume that – they actually tell me! Some in plainer words than others.

What’s an Industry Player?

Imagine – you’re a diesel fitter / a medical doctor / a civil engineer / a lawyer or a mechanic. You have earned your certification / degree(s), and decided to start, or stumbled upon a business opportunity. You’ve set up an equipment hire business / medical practice / an earth-moving business/ a law firm or workshop. For 25 years, you’ve grown the business to a multimillion-dollar business. You clearly know your stuff, don’t you?

In fact – you’re so good, you win industry awards, your peers recognise you for the great work that you do, and even invite you to serve on industry boards. That’s how good and well respected you are. Doesn’t it feel great? I’m sure it does!

You are the ultimate Industry player!

There’s just this little problem. The industry isn’t what it used to be. New alternatives are coming into the market every year; Technological solutions reduce the need for your grass-roots expertise, and you’re wondering if things will keep going the way they’ve been, for the next 5-10 years. It’s a niggly little thought that pops up sometimes, but not too often to lose sleep over it, isn’t it? Not yet, anyway…

The good news? You’re not alone. Many of your peers (i.e. other business owners) are in the same boat. I’d like to explore with you a little nuance which in my honest opinion, gets neglected quite often – the difference between Industry and Market.

The Difference Between Industry and Market

It’s great to know your industry sector and understand the profession that your business specialises in, but it’s just as important (if not more so!) to understand the market you’re selling into, and operating in. Let’s take a deeper look into what the differences between industry and market and why it’s important to be able to make a distinction between the two.

The Industry

No matter your business, you’re likely going to be very familiar with the concept of the industry you work in. Industries are categorized by businesses or corporations of similar trades so it’s easy to identify the main players and the products or services that the industry offers directly. If you’re in the equipment hire business, you know the main two-to-four main competitors in your market. You also know about all the new and improved forklifts, scissor lifts, road barriers technology or high-vis and safety equipment, right?

Other businesses that work in your industry are focused on offering only one type of goods and are concerned with what they perceive as their direct competitors. Companies within an industry are focused on the competition between the existing businesses to try and gain and maintain as much customer loyalty as they can.

The Market

The market is what a lot of businesses tend to ignore. There are two types of Markets we should consider:

Direct Market

The market of a company focuses on who their buyers are and what motivates them to purchase their products. The Market is a place where services are bought and sold between buyers and sellers.

If there is consumer demand for a product, there’s a market – it works on the familiar basis of Supply and Demand. Therefore, the businesses within the market are more concerned about the customers that are purchasing their products.

The Wider Market

As humans, we tend to stick to what we know. But the world doesn’t stop changing and improving (debatable, I know…). That quote from Henry Ford shows that mindset quite well… As business Owners, when we focus on just “our” market, we tend to miss many more opportunities. Just remember what happened to the Blacksmiths and Farriers when Henry Ford was working on his car’s production line?

Although that example might resonate with you quickly, because it’s old and familiar, it’s time you apply it to your own business too – if you supply goods and services (like forklifts and scissor lifts, and ignored the meteoric rise (and subsequent acquisition by Amazon) of Kiva Robots (an autonomous warehousing system which eliminates people and equipment from the warehouse or logistics center), well – you shouldn’t!

The wider Market does ,or will come up with alternatives, for your products, your services, and sometimes your entire industry, sooner than you think.

What’s The Difference?

Read more on the Orange Sky Blog..