Industry Analysis

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Industry Analysis

An industry is made up companies and businesses that produce the same product or similar products.

Below are topics you may want to address in your analysis of the industry.

Describe and define the industry.
Describe the current nature of the industry (stable, growing/declining, going through rapid change and restructuring, etc.).
Identify the life-cycle of the industry and/or market (emerging, mature, etc.).
If you are targeting a niche market, identify the relevant industry segments and how they are defined.
Identify and describe the forces that are currently driving the industry.
Describe current trends and important developments in the industry.
What is the growth forecast for the industry?
Identify the most important players in the industry (also industry concentration).
Describe any problems the industry is experiencing.
Describe how distribution works in the industry (ie. direct sales to customers or sales force, retail, wholesale).
Describe the supply chain relationships that may exist in this industry and describe the role of the proposed business within the supply chain in which it will exist. How do participants add or extract value at different points in this supply chain?

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