Industry analysis is the process of evaluating the economic, social, and political forces that influence a business or organization. It is a critical part of strategic planning as it enables organizations to identify trends, opportunities, and threats that may affect their operations.
Additionally, industry analysis allows for comparison of a company’s performance against its competitors, enabling it to identify areas in which it can improve.
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Industry analysis and market research
The first step in industry analysis is to conduct market research. This involves gathering data on the current market, such as size, market share, competitors, and customer needs. This information can be used to gain an understanding of the industry and its trends, as well as to identify potential opportunities and threats.
SWOT analysis
Once market research has been conducted, the next step is to conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis. This involves evaluating a company’s strengths and weaknesses, as well as the opportunities and threats present in the industry.
This information can be used to identify areas in which the company can improve, as well as potential opportunities and threats that it may face.
Benchmarking
Benchmarking is another important step in industry analysis. This involves comparing a company’s performance against its competitors and industry standards. This can be done by analyzing a company’s performance metrics, such as sales, customer satisfaction, and market share.
Competitive intelligence
The last step in industry analysis is to conduct competitive intelligence. This involves gathering information on competitors, such as their products, strategies, and financial performance. This information can be used to identify potential opportunities and threats, as well as to gain an understanding of the competitive landscape.