Market conditions are the price, commodity, financial situation in the sector of the national economy or in the economy as a whole at a given point in time. In addition, this term refers primarily to economic and social factors that affect the development of the original sector of the economy and the position of players in the market.
Key Features
Thus, market conditions are the dynamic ratio of demand to supply, expressed in the quantity and range of goods and services on the market. Moreover, such a ratio can be assessed both within the framework of the entire economy as a whole, and in individual industrial sectors (segments of the market space). In this case, the market situation is also the self-determination of the price and nomenclature policy of the main players offering their products. Therefore, let's say, an increase/fall in prices for certain goods can be provoked both by factors of the corresponding dynamics and structure of supply and demand, and by the situation inthe industry as a whole or the influence of external indicators. It is also fundamentally important that the market situation in a certain industry cannot be considered separately from the situation in related areas. The market space is characterized by a holistic interdependence of various factors that directly or indirectly affect both 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 an industry, a segment of the market space. Therefore, when assessing the features of economic reproduction, it is necessary, first of all, to calculate such indicators as market saturation and capacity, the share participation of leading enterprises, and the volume of material, technical and financial resources involved. Then, based on the data obtained, to trace how these factors affected pricing policy and demand dynamics. In any case, correcting the situation on the market - if such a need arises - depends on the real actions of all interested players, including the state as the main supervisor of the established legal norms for regulating the competitive environment.
Market factors
Among those, the following stand out:
- Dynamics of supply and demand.
- The structure of supply and demand.
- Market positioning of players.
- Structure and dynamics of trade.
- Regional supply and demand specification.
- Regional specificationcommodity base.
- Trending indicators, features of "fashion" for goods and services.
- Specific business activity.
Market forecasting
As you know, forecasts are a thankless thing, but vital for business. At the very least, it is necessary to make plans after the development strategy for the next few years has been 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 product lines, and the volume of investments in technology, etc. In a word, build daily work in your market.
