Market conditions - this is the price, commodity, financial situation in the national economy or in the economy as a whole at a given point in time. In addition, this term refers to factors primarily economic and social, which affect the development of the original industry and the position of players in the market.
Main characteristics
Thus, the market environment is a dynamic relation of demand to supply, expressed in the quantity and
nomenclature of goods and services presented on the market. Moreover, this ratio can be estimated both within the entire economy as a whole, and in individual industrial sectors (market space segments). In this case, market conditions are also self-determination of the pricing and nomenclature policy of the main players offering their products. Therefore, let’s say, an increase / fall in prices for certain goods can be triggered by factors of the corresponding dynamics and structure of
demand and supply, as well as by the situation in the industry as a whole or by the influence of external indicators. It is also fundamentally important that the market situation in a particular industry cannot be considered separately from the situation in related fields. The market space is characterized by a holistic interdependence of various factors that directly or indirectly affect the actions of structure-forming players and the activity of ordinary buyers.
Analysis
Market conditions are also a “natural” analytical indicator of the state of affairs in the industry, segment of the market space. Therefore, when assessing the features of economic reproduction, it is first of all necessary to calculate indicators such as saturation and market capacity, share of leading enterprises, volumes of material and technical and financial resources involved. Then, based on the data obtained, we can trace how these factors affected the pricing policy and the dynamics of demand. In any case, the correction of the market situation - if such a need arises - depends on the actual actions of all interested players, including the state as the main overseer of the established legal norms for regulating the competitive environment.
Market factors
Among these, the following stand out:
- The dynamics of supply and demand.
- The structure of supply and demand.
- Market positioning of players.
- The structure and dynamics of trade.
- Regional specification of supply and demand.
- Regional specification of the commodity base.
- Trending indicators, features of the "fashion" for goods and services.
- The specifics of business activity.
Market Prediction
As you know, forecasts are an ungrateful thing, but vital for business. At the very least, it is necessary to make plans after the development strategy for the next few years is clearly outlined. Then it is already possible to talk about the volumes of immediate and potential sales of goods, and the costs of producing raw materials and the product line, and the volume of investments in technology, etc. In short, to build daily work in its market.