Market Factor

A factor relating to customers, competitors, or industry conditions that affects a business's performance.

Market factors are the external factors closest to the business: potential market size, customer preferences, competitor behavior, and the Five Forces reading of the competitive environment.

Often confused with

External Factor
Market factors are one kind of external factor, the ones about customers, competitors, and industry conditions; external factors also include regulation, weather, and technology.

Taught in

See also

4.4.D.2