It is recommended that students start their client’s research reports with an Industry Analysis. The
Industry Analysis will provide you with many of the resources (IBISWorld Report, Marketline Advantage
Report), and a host of information that will be useful in completing other reports, such as lists of
potential competitors, substitutes, and target market information.
All sections are set up to allow for the fill-in of information. Anywhere the text is italic, would be where
you would put in the information pertaining to the individual assignment (and then un-italicize).
Industry Characteristics and Norms
Industry Profile
Identify the industry the company is in. If the company falls into more than one industry, list them all
using the same format, or merge them using what is most applicable from each. If merging, make an
explanatory note for the client regarding the purpose for doing so and the methods of combination used.
For the purposes of this example, we will assume the client is considering opening a full-service
restaurant.
Profile of the Industry industry:

NAICS Code: Identify NAICS Code
NAICS stands for the North American Industry Classification System, and is used by business and
governments to classify business establishments according to type of economic activity (process
of production) in Canada, Mexico, and the United States.
This can be found by examining the business or firm and first determining if they are a retail or
wholesale operation. If possible/applicable, ask the client(s) to complete the Client
Questionnaire to provide you a better understanding of their products/services, target markets,
and what industry they perceive their company to be in. If the client is a local full-service
restaurant, selling directly to customers, you may start research by performing the following
steps:
It may be difficult to find an industry if the company you’re working on does not fall into one
distinct industry. You may have to find the closest possible industry, or do more than one
industry profile if the company falls into more than one industry.
1.
2.
3.
4.
5.
6.
Go to www.libarary.ucf.edu
Log in to utilize the library resources (not necessary if you are on campus)
Under “Find”, click “Articles and Databases”
Under “Business and Hospitality”, click “Business”
Scroll down to the section labeled “Company/Industry Research”
Click the link for “IBISWorld- Industry Market Research”
7. If the client has provided you with their NAICS code, you may enter the number into the
search box and click the arrow to the right of the search box to search for that NAICS
number. If “Knight’s Restaurant” has provided you with the NAICS number of 72211b, then
several options will be returned in the search, including: “Single Location Full-Service
Restaurants in the US” and “Chain Restaurants in the US”. Select the appropriate industry
for the client. In this case, the most appropriate option is Single Location Full-Service
Restaurants in the US “. Industries to consider including in the Competitive Analysis are
“Chain Restaurants in the US”, “Fast Food Restaurants in the US”, and “Bars & Nightclubs in
the US”.
8. If you do not know the NAICS code, you may enter a search term into the search box. When
searching for “Restaurant”, several options are returned under “Industry Market Research”,
including “Restaurant & Hotel Equipment Wholesaling in the US”, “Chain Restaurants in the
US”, “Fast Food Restaurants in the US” and “Single Location Full-Service Restaurants in the
US”. Select the appropriate industry for your client.
9. After clicking “Single Location Full-Service Restaurants in the US”, you are led to the
IBISWorld Industry on Single Location Full-Service Restaurants in the US.
10. You may use the Table of Contents to navigate the document, or, you can download the
entire report by clicking the PDF icon located under the Table of Contents, where it says
“Download Report”
11. The NAICS Code is the five digit number (and possibly one letter), that follows “IBISWorld
Industry Report” on the cover page.
12. Insert this number above where it is italicized “Identify NAICS Code”

Definition: Use research resources to provide a brief definition of the industry (one paragraph)
Include primary activities/products/services.
1. The industry definition can be found on the IBISWorld Report under the section “About this
Industry”, subsection “Industry Definition”
2. Copy and paste this definition above.
3. List the “Primary activities of this industry” as well as “Major products and services” in
paragraph form
4. These items can be found on the IBISWorld Report under the section “About this industry”,
subsection “Main Activities”

Size of the Industry (Date, growth rates from year-year)
Date reflects the year for which the annual revenue was last reported. If uncertain, the section
“Key Statistics”, in the IBISWorld Report contains a highlighted year in each of the tables.
This information can be found in the IBISWorld Report, under the section “Industry at a Glance”.
There are two figures for “Annual Growth”, actual Annual Growth and projected Annual Growth.
The projected Annual Growth can be distinguished by the time period it covers, i.e. Annual
Growth 11-16 is the projected annual growth for 2011-2016. Annual Growth 06-11 is the actual
annual growth for the years 2006-2011.
o Annual Revenue: $###
This information is located in the IBISWorld Report, “Industry at a Glance” section;
subsection “Key Statistics Snapshot”.
o Annual Revenue Growth: ###%
This information is located in the IBISWorld Report, “Industry at a Glance” section;
subsection “Key Statistics Snapshot”.
o Annual Profit: $###
This information is located in the IBISWorld Report, “Industry at a Glance” section;
subsection “Key Statistics Snapshot”.
o Number of Establishments: ###
This information is located in IBISWorld Report, “Key Statistics” section, subsection
“Industry Data”. Select the appropriate year in the table, and record the number listed
for “Establishments”.
o Growth in Number of Establishments: ###%
This information is located in the IBISWorld Report, “Key Statistics” section, subsection
“Industry Data”. You can select a time period appropriate to the client to analyze the
growth in establishments, i.e. 2006-2011. Specify the time period you are analyzing, and
calculate the percentage change in the number of establishments for this period.
Example:
2006 # of establishments = 45,360
2011 # of establishments = 48,857
% change in # of establishments = +7.71%
o Employment: ###
This information is located in the IBISWorld Report, “Key Statistics” section, subsection
“Industry Data”. Select the appropriate year in the table, and record the number listed
for “Employment”.
o Annual Growth in Employment: ###%
This information is located in the IBISWorld Report, “Key Statistics” section, subsection
“Industry Data”. You can select a time period appropriate to the client to analyze the
growth in establishments, i.e. 2006-2011. Specify the time period you are analyzing, and
calculate the percentage change in the number of establishments for this period.
Example:
2006 # of employment = 453,429
2011 # of employment = 479,856
% change in # of establishments = +5.83%

Current Performance: Summarize the information on the industry’s current performance. Follow
this one-paragraph summary with any specific topics the resource goes over in bullet point
format.
Information for this section can be found in the IBISWorld Report, section “Industry
Performance”, subsection “Current Performance”.
o
o
Topic 1: Issue
Topic 2: Issue
The “Topics” mentioned above are the subsections of “Current Performance”, there may be
several depending on the industry.
Revenue Growth
Year
Revenue $Mill
Growth %
2006
2007
2008
2009
2010
2011
###
###
###
###
###
###
###
###
###
###
###
###
The information to complete the “Revenue $Mil” column in this table can be found in the
IBISWorld Report, section, “Key Statistics”, subsection “Industry Data”.
The information to complete the Growth% column can be found in the IBISWorld Report,
section “Key Statistics”, subsection “Annual Change”.

Industry Outlook: Summarize the information on the outlook for the industry. Use bullet point
form to avoid large paragraphs. If the discussion can be clearly delineated between revenue and
growth outlook, separate the two.
The information can be found in the IBISWorld Report, section “Industry Performance”,
subsection “Industry Outlook”.
o
Revenue Outlook: Summarize the forecasted revenue for an appropriate time frame
 Issue 1
 Issue 2
 Issue 3
The information can be found in the IBISWorld Report, section “Industry Performance”,
subsection “Industry Outlook”.
Revenue Outlook
o
Year
Revenue $Mill
Growth %
2011
2012
2013
2014
2015
2016
2017
###
###
###
###
###
###
###
###
###
###
###
###
###
###
Growth Outlook: Summarize the forecasted growth for an appropriate time frame.
 Topic 1: Issue
 Topic 2: Issue
The information on “Growth Outlook” may be found in the IBISWorld Report, section “Industry
Performance”, subsection “Industry Outlook”
The information to complete the “Revenue $Mil” column in the above table can be found in the
IBISWorld Report, section “Key Statistics”, subsection “Industry Data”.
The information to complete the Growth% column in the above table can be found in the
section “Key Statistics”, subsection “Annual Change”. Expand or condense the table to fit the
number of years listed in the “Annual Change” table.

Demand Determinants: Describe what drives the demand for the products/services in the
industry. If the description lists identifiably different components, use bullet points to list and
describe them.
o Determinant 1: Determinant
o Determinant 2: Determinant
o Determinant 3:Determinant
The information to complete this section can be found in the IBISWorld Report, section
“Products & Markets”, subsection “Demand Determinants”. Typically, each paragraph
represents a new “determinant”.

Major Markets:
Graph here, or put percentages with each listing
Insert the pie chart from the IBISWorld Report, section “Products & Markets”, subsection
“Major Markets”
o
If needed, a brief description of the importance of the information.
o
o
o

Segment Category: Description
Segment Category: Description
Segment Category: Description
Key Success Factors: List the key success factors (what players in the industry should do to be
successful)
o Factor: Description
o Factor: Description
o Factor: Description
o Factor: Description
The information to complete this section can be found in the IBISWorld Report, section
“Competitive Landscape”, subsection “Key Success Factors”.

Industry Cost Structure: Describe the cost structure in terms of the industry, related industries,
and other benchmarks as appropriate. Then, list costs and the percentage of total costs if the
information is available. List starting with Profit, then highest to lowest, ending with Other.
o Profit: ###%
o Expense 1: ###%
o Expense 2: ###%
o Expense 3: ###%
o Other: ###%
The information to complete this section can be found in the IBISWorld Report, section
“Competitive Landscape”, subsection “Cost Structure Benchmarks”. There will be a horizontal
bar graph in this section that details the profits and expenses of the industry.

Major Companies: List the major companies and the applicable data. Use only if relevant to the
client. May be relevant if one of the major companies is a direct competitor.
o Company Name
 Market Share: ###%
 Annual Revenue and Percent Change (year estimate): $###; ###%
 Annual Profit and Percent Change (year estimate): $###; ###%
Information covering the major companies in the industry can be found in the IBISWorld Report,
section “Major Companies”. If further information will be beneficial to the client, you may
search for additional company information using other library resources such as Hoover’s,
Marketline Advantage (Datamonitor), or NetAdvantage.
1. Go to www.libarary.ucf.edu
2. Log in to utilize the library resources (not necessary if you are on campus)
3. Under “Find”, click “Articles and Databases”
4. Under “Business and Hospitality”, click “Business”
5. Under the “Company/Industry Research” section, you will find links to Hoovers, Marketline
Advantage, and the NetAdvantage websites. All of these websites have a search feature that
will allow you to search for a company by name.

Investment Requirements:
o The level of capital intensity is level.
o Explanation
o Explanation
This information can be found in the IBISWorld Report, section “Operating Conditions”,
subsection “Capital Intensity”. The level can be found in a box in the left column of the report.
The explanation can be found in the body of the paragraph.

Technology & Systems:
o The level of technology change is level.
o Explanation
o Explanation
This information can be found in the IBISWorld Report, section “Operating Conditions”,
subsection “Technology & Systems”. The level of technology change can be found in a box in
the left column of the report. The explanation can be found in the body of the paragraph.
Bargaining Power of Suppliers
Provide graph from Datamonitor report. Enter in the numbers from the graph into the left column
below. If Datamonitor does not provide this report (as in many situations), use other library resources
such IBIS World, ABI/INFORM Complete, Business Source Premier and General BusinessFile ASAP,
coupled with your knowledge of Porter’s Five Forces, to do a best estimate of the Bargaining Power of
Suppliers. Michael Porter’s books “How Competitive Forces Shape Strategy”, “Competitive Strategy”,
and “Competitive Advantage” are all great resources to help in filling out this section.
To search Marketline Advantage for the Five Forces Analysis:
1.
2.
3.
4.
5.
6.
7.
Go to www.libarary.ucf.edu
Log in to utilize the library resources (not necessary if you are on campus)
Under “Find”, click “Articles and Databases”
Under “Business and Hospitality”, click “Business”
Scroll down to “Marketing Data”
Click the link for “Marketline Advantage”
You will be taken to the Marketline Advantage home page. You can search for a company or
industry by selecting the desired category from the drop-down menu and entering in the
desired search term
8. Choose “Industry” as your category, and enter your search term
9. Entering the search term of “Restaurant” returns thousands of results, to narrow your
search results, use the tabs on the right side of the webpage to refine your search
10. You can narrow your results significantly by clicking “North America” under the “By
Geography” option
11. Search through the dozens of remaining results to find the most appropriate industry report
12. In this example, “United States- Profit Foodservice” is the most relevant search result.
Clicking the title of the report will direct you to the report homepage.
13. On the side navigation tabs, you may see a section labeled “Five Forces Analysis”. This will
provide you with the necessary information to complete this section of the report
Key: 1 = Low; 5 = High
Score
Parameter
#
Differentiated Input: If the firm’s inputs are diverse and can come in many
forms, they have a wider range of choices. The firm will be able to shop for the
best deal, and the bargaining power of suppliers will decrease.
#
Forward Integration: If the supplier possesses a credible threat of forward
integration, where the supplier can take over their own distribution and/or
retailing, their bargaining power increases.
#
#
#
#
#
#
Importance of Quality/Cost: When the firm must find a balance between quality
and cost, it becomes difficult to have both high quality and low cost. If the firm
places importance in some level of high quality and some level of low cost of
the product s they obtain from their suppliers , the bargaining power of
suppliers increases.
No Substitute Inputs: If the firm requires unique inputs, it becomes costly to
switch suppliers, thus increasing the bargaining power of suppliers. To change
inputs would require a change to the entire manufacturing process.
Oligopoly Threat: If the market is controlled by a small number of firms, it
becomes highly difficult for new entrants to gain market share. This reduces the
threat of new entrants as it is a high barrier to overcome.
Player Dispensability: If the firm’s purchases don’t represent a significant
portion of the supplier’s business, then the firm becomes dispensable to the
supplier. The supplier does not depend on the firm’s business, thus increasing
the bargaining power of the supplier.
Player Independence: If the firm does not rely solely on one supplier or one
group of suppliers, and has a wide array of choices to choose from as to where
to get their inputs, the bargaining power of supplier’s decreases.
Supplier Size: If suppliers are concentrated—where there are few suppliers, and
each one is large and has significant market share—their bargaining power
increases.
Switching Costs: If the cost to switch suppliers is high, supplier bargaining
power is increased. When there are significant switching costs, the products are
generally not standardized and the firm cannot easily switch to another
product.
Source: MarketLine/DataMonitor, Quick MBA & Purdue University Agriculture Innovation &
Commercialization Center
#
If the Porter’s Five Forces Analysis is done using sources other than MarketLine/DataMonitor, then you
must change the “Source” that is listed underneath this table.
Analysis: Conclude the bargaining power of suppliers and provide a brief analysis of the above.
If you were able to find this information through Datamonitor, there will be a short explanation and
analysis covering the topic. Otherwise, use your own knowledge and resources to explain the rating you
have provided.
Barriers to Entry/Threat of New Entrants
Provide graph from Datamonitor report. Enter in the numbers from the graph into the left column
below. If Datamonitor does not provide this report (as in many situations), use other library resources
such IBIS World, ABI/INFORM Complete, Business Source Premier and General BusinessFile ASAP,
coupled with your knowledge of Porter’s Five Forces, to do a best estimate of the Barriers to
Entry/Threat of New Entrants. Michael Porter’s books “How Competitive Forces Shape Strategy”,
“Competitive Strategy”, and “Competitive Advantage” are all great resources to help in filling out this
section.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Go to www.libarary.ucf.edu
Log in to utilize the library resources (not necessary if you are on campus)
Under “Find”, click “Articles and Databases”
Under “Business and Hospitality”, click “Business”
Scroll down to “Marketing Data”
Click the link for “Marketline Advantage”
You will be taken to the Marketline Advantage home page. You can search for a company or
industry by selecting the desired category from the drop-down menu and entering in the
desired search term
Choose “Industry” as your category, and enter your search term
Entering the search term of “Restaurant” returns thousands of results, to narrow your
search results, use the tabs on the right side of the webpage to refine your search
You can narrow your results significantly by clicking “North America” under the “By
Geography” option
Search through the dozens of remaining results to find the most appropriate industry report
In this example, “United States- Profit Foodservice” is the most relevant search result.
Clicking the title of the report will direct you to the report homepage.
13. On the side navigation tabs, you may see a section labeled “Five Forces Analysis”. This will
provide you with the necessary information to complete this section of the report
Key: 1 = Low; 5 = High
Threat of New Entrants:
Score
#
#
#
#
#
#
#
Parameter
Distribution Accessible: When access to customers is easy, the threat of new
entrants increases. When there is limited space available on shelves, for example,
it becomes harder for new entrants to reach customers. Easier, less limited
channels allow for less of a barrier to entry.
Incumbents Acquiescent: When the current players accept entry of new firms
without protest, the threat of new entrants increases. However, when incumbents
fight the entry of new firms, this creates a barrier to entry that new firms must
overcome.
Little IP Involved: Intellectual Property (IP) serves to restrict entry into an industry.
When patented ideas and knowledge that provide competitive advantages are
treated as private property, others are prevented from using the knowledge, and
a barrier to entry is created. Without significant IP rights, the barrier is smaller or
non-existent, and the threat of new entrants is increased.
Little Regulation: While the government preserves competition through anti-trust
actions, it can also restrict competition through the granting of monopolies and
through regulation. If there is little regulation in an industry, or an industry is
deregulated, competition can blossom through the entry of new firms, and thus
the threat of new entrants is increased.
Low Fixed Costs: Low fixed costs can contribute to a lower per-unit cost of
production. This lower unit cost decreases the economies of scale that would
have stood in the way of new entrants as a barrier to entry, and thus increases the
threat of new entrants. On the other hand, high fixed costs in the form of highly
specialized technology and assets can bind a new entrant to asset specificity—the
extent to which a firm’s assets can be used to produce a different product. New
entrants are reluctant to make investments in highly specialized assets when
entering risky industries.
Low-Cost Switching: When the consumer’s cost to switch is low, new entrants
have an increased chance at gaining market share. This low cost of switching
increases the threat of new entrants by allowing new entrants to attempt to have
consumers switch to their products of services.
Market Growth: Slow market growth causes firms to fight for market share. New
entrants are less likely to succeed in an industry where gaining market share is
difficult. In a growing market, firms are able to improve revenues simply because
of the expanding market. A growing market gives room for new entrants, and
increases the threat of these new entrants.
#
#
#
#
Scale Unimportant: The most cost efficient level of production is the point at
which unit costs are at a minimum. If this level for an industry is known, then it is
possible to determine the amount of market share necessary for low cost entry or
cost parity with rivals. The existence of such an economy of scale creates a barrier
to entry. However, the smaller the difference between the cost efficient level of
production and the actual entry unit costs, the smaller the scale and the smaller
the barrier. When the economies of scale are smaller, the threat of new entrants
is increased.
Suppliers Accessible: The threat of new entrants increases when entry by new
firms is easier due to established firms not having favorable access to inputs. If
incumbents have exclusive access, this causes a barrier to entry for new firms.
Undifferentiated Product: When products are not unique or are commodities, the
assets used to produce them tend to be common. The threat of new entrants
increases because new firms are more willing to enter in an industry if they know
they can easily liquidate their inventory and assets in the event of failure.
Weak Brands: Strong brand Identification tends to constrain competition.
However, when brand association is weak, competition will rise. This becomes a
barrier to entry to new firms, and the threat of new entrants will decrease.
Source: MarketLine/DataMonitor, Quick MBA & Purdue University Agriculture Innovation &
Commercialization Center
If the Porter’s Five Forces Analysis is done using sources other than MarketLine/DataMonitor, then you
must change the “Source” that is listed underneath this table.
Analysis: Conclude the threat of new entrants and provide a brief analysis of the above.
If you were able to find this information through Datamonitor, there will be a short explanation and
analysis covering the topic. Otherwise, use your own knowledge and resources to explain the rating you
have provided.