An industry analysis report looks at the companies that are involved in the industry.An industry analysis report aims to establish how your company can gain an advantage in an industry by understanding the history, trends, competitors, products, and customer bases of the industry.This type of report allows investors to understand the makeup of an industry.You will be prepared to write after you have conducted research and established an organizational framework.
Step 1: Define the analysis's scope.
You could look at the industry as a whole or an industry segment which targets a particular subset of the general market.For example, you could be looking at the entire industry or a specific area.You will need to identify the companies that offer similar services or products to what your company offers.It is possible that you need to conduct some cross-industry research.Statistics may need to be compiled on the console, PC, and handheld gaming markets.
Step 2: Independent government agencies can be used to research the industry.
There are huge volumes of statistical information in government databases.The Market and Industry Analysis Statistics published by the United States Census is one of the best government sources for industry statistics.Reports and statistics are published.For other countries, consult federal databases and agencies within your nation, or conduct an internet search with the name of your industry in mind.
Step 3: Contribute independent research.
There are at least two independent research reports that should be consulted.For a published report or market analysis relevant to your research, contact private data-collection agencies or industry interest groups.You can talk to experts in your company.Their views may be biased or unreliable.
Step 4: Look at the data from trade associations.
There may be more than one trade association.If you work in the computer industry, you might be interested in recent industry-wide reports from the Computer & Communications Industry Association, the Association for Interactive Marketing, or the Information Systems Security Association.You can find background info on your industry analysis by consulting trade groups and industry publications.
Step 5: Refer to academic research.
You can check academic databases for published studies in your area of interest.The Encyclopedia of Emerging industries is a good source.
Step 6: Use the sources above to gather relevant data.
Special note of annual revenues in the industry, number of involved companies, and workforce statistics.The size of the customer base and buying trends can be found in the statistics.Check against other sources to make sure your information is accurate.When you present your final business proposal to investors or stockholders, make sure your data is solid and accurate.
Step 7: There is an ample market for your proposal.
You need to know the market size to do this.If the company were to capture the entire market niche, the relevant market size would be its potential sales.The total of all electric car sales in a given year is what your relevant market size is.If your market analysis relies on assumptions, be sure to carefully analyze them.This is important for a new product that is being accepted quickly.Both dollar amount and unit amount should be used to calculate market sizes.The relevant market size could be $200 million per year, or 30,000 electric cars.
Step 8: Consider industry changes.
You can ask important questions to understand industry trends.In addition to the obvious factors like competition from other companies and consumer preferences, you should consider the impacts of globalization and technological innovation.The state of the economy at the global, national, and local levels should also be taken into account.The market size has changed in the past year.The last five years?The last ten years?What is the expected growth of the market?What are the factors that will affect market growth?Is the market affected by new demographic?Is the demographic changing?
Step 9: Barriers to entry or expansion are things to think about.
There are barriers in the form of market competition, but it could also be a lack of money or talent.It will take several million dollars in equipment and machinery to make a chip production line.You will need computer engineers and programmers to make and design the chips.Your employees will be competing with other firms as well.When addressing barriers to entry, all of these are things to consider.
Step 10: Descriptions of the major competitors in the industry are provided.
Statistical information about their revenues, work force strengths, and products can be used.Let us know their past business moves, forthcoming products, and marketing strategies.You should include manufacturing and regulatory analyses.Competitive advantages or disadvantages can arise from anywhere in the company analysis.Do your competitors use billboard, radio, TV, internet, or print ads?How many are effective?Is your company able to compete with their level of marketing?The competition has made mistakes.Improve on their successes by learning from their failures.
Step 11: Put your company within the industry.
You can introduce how your company is positioned within the industry and compares with other companies by using the framework you have built.It is a good idea to include statistical information about your business in order to be honest about the advantages and disadvantages of your firm.
Step 12: A broad description of the industry is what you should begin your report with.
Paragraph about the industry's history.Write about the size, products, and geographic scope of the industry, including both manufacturing centers and consumer centers.Introduce your company's position within the larger industry context and show how industry trends make the implementation of your business proposal desirable.Determine what stage the industry is in.Is it emerging?The industry is growing at less than 5% per year.A state of steady growth over the last few years?Maturing is a state in which companies are merging or failing.Growth is slowing to less than 5% per year.There has been no growth for a long time.
Step 13: Give a market analysis.
Predicted growth in the industry, trends in products and technology, and factors affecting competition.The competitive landscape can be described in a general way.The business plan will detail the state of the competition.There are few barriers to entry for healthy industries that are high-growth and profitable.The industries that should be avoided are those that are unprofitable and difficult to enter.
Step 14: Customers outlook and demographic info should be described.
The major customer groups should be described in the analysis.What is the target customer's age?What is their race?What are their needs and wants?You should be in the customer's place.When they first hear about your product or service, think about what they experience.Consider what they think about their choices.Think about how you can expand your product or service to attract new customers or pull existing customers away from your competitors.
Step 15: Use the analysis to come up with a plan for the future.
In the rest of your proposal, lay out the strategy in more detail.Specific goals, like revenues and market share, should be included.Marketing strategies, product development ideas, and workforce issues could position your company for growth within the industry.A call to action is what you could close with.A statement like "given the current state of the market, it is advisable to implement the following business proposal" followed by a rough outline of your proposal can function as a smooth transition into the rest of a plan.
Step 16: The report can be changed.
Take the report down to a manageable size.A two to three page industry analysis report is typical.The length of your report should be adjusted based on how it will be presented.It is better to keep the analysis short and to the point if it is part of a business plan.You can devote a lot of space to raw data and detailed descriptions if your report is presented independently.