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.
Links checked July 2014.