An industry is the collection of business firms involved in producing the same (or very similar) product.  For example, the beef cattle industry involves all of the business firms involved in producing, processing and selling beef (the supply chain for beef).  The organic beef cattle industry is a subset of the beef industry that just involves business firms involved in producing, processing and selling organic beef (the supply chain for organic beef).  The organic beef processing industry is a subset of the organic beef industry that just involves business firms involved in processing organic beef (one element of the supply chain for organic beef).  So when you are doing industry analysis, it is important to carefully define the industry (collection of business firms and their function) in which you are interested.  External Scanning – Industry Analysis provides a listing and discussion of the major factors to consider in the analysis process.

For more information on this topic, see the links listed below of articles posted on related Web sites.

• Strategic Planning: Scanning the Horizon – Purdue University Extension -- Because the future cannot be known with certainty, we must make assumptions about what the future may hold.
  
• The Competitive Environment: New Realities – Purdue University Extension – Designed to help you identify important trends that affect your business.
  
• Industry Analysis: The Five Forces – Purdue University Extension – The industry structure determines the rules and strategies you are likely to use.
  
• Porter’s Five Forces – Bplans.com -- Understanding the dynamics of competitors within an industry is critical for several reasons. Find out what they are.
  
• Market Analysis for Your Online Business – Bplans.com -- Market analysis is the foundation of the Web plan.
  
• Concentration of Agricultural Markets – University of Missouri – Concentration of major commodity industries.
  
• Low-Cost Methods for Spotting Customer Trends – HBS Working Knowledge – Here are ten low-cost trendspotting tips.