Industry analysis

Question 1

What to analyse in an industry analysis?

Answer 1

1. Investigate the industry overall
2. Investigate the suppliers
3. Investigate the future

Question 2

Industry analysis (7)

Answer 2

1. Where is it in its lifecycle?
2. How has the industry been performing over the last 1-10 years?
3. How have we been doing compared with the industry?
4. Who are the major players, and what market share does each have?
5. Has the industry seen any major changes lately? (new players, tech, regulation)
6. What drives the industry?
7. What are the margins? Profitability

Question 3

Suppliers (4)

Answer 3

1. How many are there?
2. What is their product availability?
3. What is going on in their market?
4. How is the supply chain? Is it all intact?

Question 4

The future (4)

Answer 4

1. Are players entering or leaving the market?
2. Are any mergers or acquisitions going on?
3. Are there any barriers to entry or exit?
4. Substitutions: What alternatives are there?