Industry analysis is a market assessment tool designed to provide a business with an idea of the complexity of a particular industry. Industry analysis involves reviewing the economic, political and market factors that influence the way the industry develops. It involves reviewing the economic, political and market factors that influence the way the industry develops. It can help you create long-term strategies, see threats before they reach you and discover opportunities before they pass you by.
Major factors can include the power wielded by suppliers and buyers, the condition of competitors, and the likelihood of new market entrants. Most important factors can involve the power exerted by the buyers and suppliers, the prospect of fresh market entrants, and the condition of competitors. An Industry Analysis is an assessment of the profitability of an industry. In order to perform this assessment, your objective is to characterize the driving forces of competition within an industry. The key advantage of accomplishing an industry analysis is that the company managers obtain a better understanding of the position of their business in the respective sector. The purpose of this analysis is to help management create and maintain a competitive advantage that allows the company to excel in the industry. The analysis is also helpful to the companies respond in a better way to changes in the industry.