At times, conducting a thorough industry analysis can be time-consuming and tedious. However, an industry analysis can help identify what important problems need to be addressed by your company. This is especially important since the business world and technology is constantly evolving and a company must evolve with it.
Industry analysis is a tool that gives you insight into how your company or industry stacks up against its competition in terms of performance, capacity and growth. You should conduct industry analysis to identify strengths and weaknesses and develop strategies to improve your company’s standing within the industry. Planning by performing these types of analyses makes it more likely that your business will reach its goals.
This article is a quick guide on how to conduct industry analysis so you may apply it to your business or in the company you work at.
1. Conducting background research
Do some research on your industry and competitors to get a better understanding of the market. Decide whether you want to research the whole industry as a whole or a specific subsection of it. Consider what questions you want to be answered by your analysis, such as how your competitors are positioning themselves or where the market is heading. Survey your competition and take a look at what information is available about them. You can also draw up a list of those companies that would be willing to share information about their businesses with you. This will allow you to learn almost everything about your business from the format of delivery challan to creating business plans.
2. Collecting the data
Stay up to date on what your competitors are doing and collect information about the market as a whole. Put out a call to your network or check the latest available industry reports from your company or others to understand trends and developments in the market. You might also glance at your competitors’ advertisements, product placement in stores and public financial data to discover their target audiences. You may choose to collect additional information by using secondary sources, such as government statistics and journal articles. Additionally you should also be aware of macroeconomic factors that may affect your business. Hence, pondering over GST members list and knowing the recent announcements of GST council is a good idea. If you’re looking for frequent updates on all of these from one place then you should take a look at Khatabook’s website.
3. Analyze the data
You’ll need to analyze the data you collected using at least one type of industry analysis model. Using the model you select compare your products and marketing strategies to those of a competitor. You may also want to consider how your strengths are comparable to those of other companies and evaluate how they stack up.
When you are analysing the data following, the factors can have an effect on your final results:
- Preference of the consumers
- Projected market growth
- Preference of the consumers
- Regulatory conditions
- New technological innovations.
4. Final Report
You should share your analysis in a written report to make this information accessible to a broader audience. A template of your report should include the following:
5. Final evaluation
Your report should help you decide on the current state of the company and how to improve in the focus area. After you complete your analysis, if you have remaining questions, you can focus on another industry factor in a second analysis.