Definition (1):
The general conditions for the competition that influence all businesses that provide similar products and services.
Harvard professor Michel E.Porter propelled the concept of industry environment into the foreground of strategic thought and business planning. The cornerstone of his work first appeared in the Harvard Business Review, in which Porter explains the five forces that shape competition in an industry. His well-defined analytic frame-work helps strategic managers to link remote factors to their effects on firms operating environment.
Definition (2):
“The overall economic, regulatory, social, and political conditions that affect all participants in an industrial market in a similar way and cannot readily be influenced by marketing.” This industry environment faced by a business can involve such things as economic cycles, demographics, and lifestyle shifts.
Definition (3):
The external forces that marketing cannot control but can have an important impact on the product offering’s success consisting of the current competition, new competition’s threat, price competitiveness, economic factors, and changes in customer tastes.
Use of the term in Sentence:
- The businesses should take the changes in the industry environment into consideration while marketing their products.