Similar companies are grouped into industries, and there are a number of different industries such as department stores and shoemakers.
Industry grouping is based on the main product that the company manufactures or sells. Meanwhile, industries are grouped into sectors.
The North American Industry Classification System is the standard classification system used by government agencies to organize companies by sector or industry.
Alternatively, the Global Standard for Industry Classification assigns each company an economic sector and an industry group.
Companies in the same industry often operate in the same way due to macroeconomic conditions helping or hurting all companies in the industry.