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Conducting Industry Analysis

Industry analysis is crucial for those business who would like to enter into a new industry. For an established business in a industry, an on-going monitoring of the industry development, trends and situation can build up solid foundation for formulating strategies and make right business decisions.

Industry analysis can help business understand the critical factors and players to their business. There are many external factors impacting business, however, there are three critical players in the industry that may have dominate roles in determine the business profit and strategy. The three players are: customer, supplier and competitor. For the firm to make profit, it must create value for customers; During the value creating process, the firm acquires goods and services from suppliers. it must understand its suppliers and how to form business relationships with them; the ability to generate profitability from value-creating activity depends on the intensity of competition among firms that vie for the same value-creating opportunities; the firm must understand competition. Although there may be other external factors to consider such as political, technical etc, these three core factors should be give priorities when conducting industry analysis.

 
How to conduct competitive analysis?

With the potential to conduct business and reach a large base of customers business often compete against each other for the same target market. When planning an advertising campaign a business not only needs to know their marketing strategy but the strategy of their competition as well. To advance themselves businesses can conduct a competitive analysis to see where they stand against their competitors.

 
Performing breakeven analysis

Performing a breakeven analysis is just but a simple math provided you can predict your sales and costs very well. A company or a firm is broken even if the total sales and total revenues are equal. This means that there is a perfect balance between the sales and cost incurred while making the sales. At such a point, there is usually no profit made. The breakeven point is important to a business as it determines the lowest profit a company can gain. This results to creating a reasonable and working margin of operation.

 
How to Conduct Market Analysis?

Market analysis is crucial to the success of business for making right market strategies and business decisions. A market analysis studies the attractiveness and the dynamics of a special market within a special industry. To perform a successful market research and analysis, marketing professionals need to study all aspects of market including the market size, market trend, market growth rate and marketing opportunities.

 


 

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