Understanding your Industry
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An industry is a group of businesses that do similar things—they compete with each other
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Within the overall industry, there are many groups of customers, called markets
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Specifically consumer markets—individuals who buy retail products or services
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Even more specific are market segments—groups of people with similar qualities that influence
what they buy.
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Qualities such as demographics: age, gender, income; geography: region, climate, city size;
psychographics: lifestyle, activities, interests
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Your proposed business must find a niche—an unmet need—something beyond what
competitors are providing.
Assess the competition
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Is the industry expanding or shrinking? Are profits increasing or decreasing?
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Who are the major competitors? How is your product or service different or better than what is
already offered?
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Has the industry changed recently? Where is the industry going?
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How has technology impacted the industry?
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Is it an established industry, or are new companies entering it successfully?
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What kinds of profits do companies in the industry make?
SWOT Analysis
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Strengths: how is your proposed business secure?
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Weaknesses: where might your business be insecure?
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Opportunities: where is there a gap in the market?
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Threats: what could hinder your business’s success?
Outline a SWOT analysis for your proposed business:
Strengths:_____________________________________________________________________________
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Weaknesses:__________________________________________________________________________
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Opportunities:_________________________________________________________________________
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Young Entrepreneurs Program
Industry Analysis
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Threats:______________________________________________________________________________
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Into which industry does your proposed business fit?
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What kinds of trends are currently happening in the industry?
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What five words would you use to describe the type of person who would buy your product or service?
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Product Development Process
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The product development process is the path from initial concept to finished product.
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Develop a product concept and present the idea to potential buyers as well as people within the
company. Brainstorm about design and consider their feedback.
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Decide how the product will be made, what parts it will need, and how it will be put together.
Decide if the product will be made within the company or if parts and/or manufacturing will be
outsourced.
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Keep revisiting the design to make sure that the product will be appealing to potential
customers.
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Think about manufacturing specifically. The goal is to make the product at the highest quality for
the lowest cost.
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Use the fewest possible parts and streamline the design.
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Develop a prototype—an actual model of the finished product—and test it to make sure that it
does what it’s supposed to do.
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Next, during the ramp-up stage, all workers are shown how to put together the product, and
the first ones finished are carefully inspected to make sure there are no imperfections.
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Finally, launch the product! Make it available to be distributed on a widespread level!
What kind of system will you use to get the product to consumers? Direct sales, a wholesaler, or a
retailer? Will you use online sales and store your product in a warehouse until customers place an
order? Or will you use a retailer like Wal-Mart? Or a retail location for your product specifically?
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Young Entrepreneurs Program
Industry Analysis
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How will customers pay for the product or service?
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Who will sell your product or service?
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How will your product or service be delivered? What kinds of supplies or parts will you purchase, and
how much will you make in-house?
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What kinds of supplies or equipment are needed for business start up?
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Young Entrepreneurs Program
Industry Analysis