What is meant by industry analysis?
Industry analysis is an assessment tool used by business analysts to understand a particular industry's competitive dynamics. It is an essential tool to see whether your business fits in the larger market against its competitors.
What should industry analysis include?
Industry analysis is an assessment tool used by business analysts to understand a particular industry's competitive dynamics. It consists of three major elements:
- The forces responsible for work in the industry.
- The overall look of the industry.
- The crucial factors that determine a company's success within the industry.
Why is an industry analysis important?
Industry analysis helps you to understand the market status of the industry. By performing industry analysis, you can identify the strengths, weaknesses, opportunities, and market competitors' threats. This SWOT analysis helps in planning for the better of the organization. You can use our
SWOT templates to determine the competitor's position.
What are the five forces of industry analysis?
The five forces of industry analysis are also known as Porter's Five Forces. It is nothing but a layout to tell about the company's or organization's competitive environment in the market. The five force depends on the number and the power of
- A company's competitive rivals.
- Potential new market entrants in the market.
- Suppliers.
- Customers.
- Substitute products.
Make use of our
Porter five forces templates to influence a company's profitability.
How to do an industry analysis?
Industry analysis is a long and time-consuming process. Follow the following steps and include them in your analysis.
- Perform in-depth industry research and attain all the possible detailed information about it..
- Focus on the relevant industry.
- Perform the demand and supply scenario for the particular industry. It is one of the critical factors.
- Carry out competitor analysis by using Porter's five forces templates and SWOT templates.
- Be completely aware of the new developments taking place in the market. Be up to date.
What to write in industry analysis?
- Begin with an overview of your industry.
- Support your industry data with charts and graphs and also mention its growth potential in the coming future.
- Showcase your competitive strategy, SWOT analysis, etc.
- Perform analysis.
- Highlight factors like geographical growth, consumer base, price fluctuations, past performances, and income projections.
- Forecast your industry’s growth for the coming years, based on your present financial data.
- Represent your industry data with the help of your Porter five forces model explaining in detail.
- Showcase long-term and short-term valuations that are impacting the industry.
