Industry Analysis
Outline
A.
Define the Industry
B.
Industry Demographics
a. Number of companies
b. Annual revenues
c. Growth Rate (%)
d. Average size of companies
C.
The Competition
a. National
b. Local
D.
Market Drivers – what drives demand for your product or service
E.
Industry Challenges
a. Barriers to entry (see page 125 in textbook)
b. Threats from substitute products
c. Sources of supply
d. Buyers ability to bargain
e. Technology
f. Access to labor
i. Favorable terms?
ii. Unions?
iii. Require highly skilled/educated employees (cost more)
F.
3 Critical success factors – need to be quantitative. This should come
from your analysis of the industry.
G.
Prognosis – This is your assessment as you will not find an “answer”
a. Is the industry a good investment?
b. Is growth possible?
http://www.westga.edu/~bquest/2002/strategic1.htm