Posted in Marketing and Strategy Terms, Total Reads: 411
Definition: Market Condition
Market condition is the characteristics and the situation of a particular market at a particular point of time. Defining market condition includes stating the number of competitors in a particular market, the intensity of competitiveness, the total market available, and the rate at which the market is growing.
A market condition is analysed before a company decides to enter a particular market or launch a new product in that market. Market condition tell you about the external factors which do not depend on you, but which has to be taken into account before deciding any strategy as to how and when to enter or whether even to enter a particular market.
The above graph helps me decide one aspect of the market condition of a particular real estate market- that the sales is very volatile and not stable. If I am a risk averse firm, I should be reluctant to enter a market with such a condition. Analysing Market condition helps you decide about entering the market.