Title: Difference Between Industry & General Environments | Bizfluent
Headings: Difference Between Industry & General Environments
Difference Between Industry & General Environments
Industry Environment Defined
Differences Between Industry Environments
General Environment Described
Examples of External Conditions

Content: Difference Between Industry & General Environments | Bizfluent
Difference Between Industry & General Environments
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By: Tasos Vossos
Updated September 26, 2017
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Industry and general environments are terms economists use to describe conditions of a specific financial sector or broad external conditions that can affect organizations. For example, florists and car manufacturers have other concerns as far as raw materials, production process and distribution are concerned, but they are both concerned about customers' purchasing power and taxation. Therefore, the difference between industry and general environments lies in scale and universality. Industry Environment Defined
An industry's environment describes all conditions that can affect a business within the strict boundaries of a financial sector. It encompasses "Porter's Five Forces," such as rivalry between the industry's firms, the threat of new entrants, the threat of substitute products, the bargaining power of customers and the bargaining power of suppliers. These forces determine the industry's degree of competitiveness and price pressure. Differences Between Industry Environments
Industry environments may have huge differences between them, as serious topics of one sector can be non-existent for another. Gas providers don't have to care about the bargaining power of customers for example, as without an alternative, people must buy gasoline for their transportation and gas heat, no matter what the cost. On the other hand, food producers must provide competitive prices, as with an abundance of substitutes, consumers can go for other products when, for example, the price of tomatoes rises dramatically.