Industry Analysis Flashcards
It is a systematic arrangement of evaluating all the factors concerning a particular industry in which the company of your choice exists.
Industry analysis
These are goods can be used in place of another
Substitutes
These are goods that may even, if partly, satisfy the same needs of consumer such that the consumer may use one instead of another
substitutes
The key factors to be considered in analysing your industry identified by SBTDC
Geographical area
Industry
Product
Buyers
Regulatory environment
Company Information
A brief history of the industry
Factors that affect growth of the industry
Trends in sales over recent years
Current operational/management trends within industry
It is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture
SWOT Analysis
It describes what an organization excels of and what separates it form the competition
Strengths
this stops an organization form performing at its optimum level
Weaknesses
They are areas where the business needs to improve to remain competitive
Weaknesses
These refer to favorable external factors that could give an organization a competitive advantage
Opportunities
These refers to factors that have the potential to harm an organization
Threats
who developed the five forces of competitive position analysis
Michael E. Porter
This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market
Porter’s Five forces of competitive position analysis
The five forces of competitive position analysis
Competition in the industry
Potential of new entrants into the industry
Power of suppliers
Power of customers
Threat of substitute products
It refers to the number of competitors and their ability to undercut a company
Competition in the industry
It addresses how easily suppliers can drive up the cost of inputs
Power of suppliers
