Show This preview shows page 1 - 2 out of 4 pages. Industry Analysis- business research that focuses on the potential of an industryIndustry- a group of firms producing a similar product or serviceCompetitor Analysis- detailed evaluation of a firm’s competitorsIndustry AnalysisWhen you study an industry ask yourself 3 three questions1.Is the industry accessible?2.Does the industry contain markets that are ripe for innovation or are underserved?3.Are there positions in the industry that will avoid some of the negative attributes of theindustry as a whole?PositionCompany level a firm’s position determines how the company is situated relative to itscompetitorsIndustry Trends1.Environmental trends - Vitamin Water became popular because of the renewedemphasis on health and staying fit2.Business trends - some firms may benefit from an increasing ability to outsourcemanufacturingTrade Association / Trade Shows / Trade Journals page 174The Five Forces Modelis a framework entrepreneurs use to understand an industry’s structure1.Threat of Substitutesa.Preferably low so people use your Sweet’N Low rather than Sugar in the Raw2.Threat of New Entrantsa.There are techniques to prevent people from barging in on your industry (barrierto entry)i.Economies of Scale- occurs when mass-producing a product results inlower average costsii.Product Differentiation- it would be mighty costly to contend againstApple laptops or PepsiCo sodasiii.Capital Requirements- need large sums of money to enter, theautomobile industry is an example of thisiv.Cost Advantages Independent of Size- perhaps a landscaping company Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 4 pages? Upload your study docs or become a Course Hero member to access this document This preview shows page 8 - 11 out of 13 pages. 1.Explain the purpose of an industry analysiso2.Does the industry contain markets that re ripe for innovation or an Get answer to your question and much more Get answer to your question and much more •Studying Industry trends:oEnvironmental trendsoBusiness trends2.Identify and discuss the 5 competitive forces that determine industry profitability (Porter) Get answer to your question and much more 3.Explain the value that entrepreneurial firms create by successfully using the 5 forces model•Can be explained in 2 ways? Get answer to your question and much more Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 13 pages? Upload your study docs or become a Course Hero member to access this document Professor denisbeauschesne Tags Business, Entrepreneurship, entrepreneurial firms, entrepreneurial firm, Ireland Chapter What is an industry analysis in a business plan?Industry analysis is specific to the particular industry in which a business is currently operating or plans to venture. It provides information from which a business owner can create a long-term strategy to minimize risks and take advantage of growth opportunities.
What is an industry analysis and why is it important for a new firm to analyze the industry in which it may choose to compete?Industry analysis, for an entrepreneur or a company, is a method that helps to understand a company's position relative to other participants in the industry. It helps them to identify both the opportunities and threats coming their way and gives them a strong idea of the present and future scenario of the industry.
How do you do industry research?How do you do an industry analysis?. Conduct background research. Conduct detailed background research on your industry and competitors to understand your market. ... . Collect your data. Collect data that helps answer questions about the market and your competitors. ... . Analyze your data. ... . Write your analysis. ... . Evaluate your business.. What are the objectives of industry analysis?The learning objective for the industry analysis is to determine the opportunities and threats that exist for firms within a competitive environment. They should be able to appreciate how the various forces operating in an industry create or limit the chances for survival.
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