Industry Analysis

Industry analysis is the evaluation and examination of the economic forces and factors that influence the dynamics of a specific industry. This process involves assessing various elements, such as market trends, competitive landscape, regulatory environment, and customer segments, to understand the overall structure and performance of the industry. Commonly used frameworks for conducting industry analysis include Porter’s Five Forces, which evaluates competitive rivalry, the threat of new entrants, the bargaining power of suppliers and customers, and the threat of substitute products. The objective of industry analysis is to gain insights that can inform strategic decision-making, investment choices, and business planning. It helps organizations identify opportunities and threats within their industry, assess potential market entry or expansion strategies, and understand the underlying drivers that affect profitability and growth.