An industry analysis template is a document which is used by the companies and other businesses in order to analyse their positions in the relevant market or industry. With an industry analysis report, a company evaluates where it stands in the industry and can compare its performance and achievements with other businesses in the same industry, offering the same products or services as are provided by the company. An effective industry analysis template allows the management of the company to easily identify their overall deficiencies and to take necessary measures to rectify such deficiencies in order to beat their competitors.
Moreover, any potential threats to the business of the company can also be identified and the steps can be taken on time in order to minimize these threats. In other words, we can also say that the industry analysis template allows the decision makers of a business to know what’s going around in the relevant industry or market. As this document is of much importance to a business, make sure to check out the following useful industry analysis templates and examples.
Industry Analysis Templates
Sample Industry Analysis Template
Blank Industry Analysis Template
Useful Industry Analysis Template
Step Wise Industry Analysis
Formal SWOT Analysis Template
Professional Industry Analysis
Formal Market Analysis Report Template
Progress Report for Industry Analysis
Attractive Industry Analysis Template
Extensive Industry Analysis Report Template
Transport Industry Analysis
Regular Industry Analysis Template
Manufacturing Industry Analysis Template
Company’s Industry Analysis Template
Official Industry Analysis Template
Methods of Performing an Industry Analysis
Whenever an industry analysis report is required to be prepared, three methods are commonly used. Each of these three methods are explained below:
SWOT Analysis:
Probably, most of you have heard about the SWOT analysis. The word SWOT is:
S: Strength
W: Weaknesses
O: Opportunities
T: Threats
Following are some of the factors to consider while performing the SWOT analysis:
Internal Factors:
These are the factors which are already present and contributing to the business. As these are internal factors, they can be controlled by the company.
External Factors:
These factors can not be controlled by the company. However, with proper analysis and experience, the likelihood of their occurence can be assessed and any threats can be minimized.
PEST Analysis:
The PEST analysis is also a common method used for making a marketing analysis. This method is effective because in addition to the internal factors, it also takes into account the external factors and environment. Following are the components of a PEST analysis:
Political:
The political factors and alterations in certain rules and regulations also affect the business of a company. These include amendments in tax laws, policies, labor laws, environmental regulations, tariffs and trade policies etc.
Economic:
These factors are those which have direct impact on the routine business of the company like fluctuations in exchange rates, inflation, market interest rates and growth rates etc.
Social:
These factors are related to the society and its trends and norms, and their ultimate impacts on industries and businesses. These include changes in trends, fashion and behaviors etc.
Technological:
These are the factors which have an impact on the businesses as a result of changes and advancements in the technologies.
Porter’s 5 Forces Model:
This particular model was suggested by Michael Porter in the year 1980, in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors”. In this book, he mentioned that there are five forces or factors that can be helpful in preparing a proper and useful industry analysis report for your business. These five factors are explained below:
Competitive Rivalry:
Competitive rivalry is the determination of intensity of competition between potential competitors in a particular industry. It also determines the share of the market that each competitor in a market owns. This factor is very important to determine as it helps to evaluate a company’s position in its market.
Supplier’s Strength:
A relationship between a business and its suppliers is of a great importance. As both the parties need each other for their respective businesses, so it is very important that this relationship must be strong. Particularly, if the industry of your business has just few suppliers, then the suppliers will have a great strength and can manipulate you and your business.
Customer’s Strength:
If the industry of your business is such that the customer or buyer is powerful and has a great strength, then this factor can also manipulate your business. Of course, the customer will demand high quality, low price and additional services.
Threats from New Businesses:
While preparing an industry analysis report, this factor is of a great importance. Of course, the threats from new businesses in the same market or industry of which you are also a participant, will be potential and must be considered on timely basis. Moreover it also increases the competition in the relevant industry.
Availability of Substitute Products or Services
The availability of similar substitutes or alternatives in the same market are also an important factor to consider. It may be possible that a business gets more market share in an industry by offering a less expensive product or service, even if it is not providing the same quality as you are providing. As the cost is an important factor, it is possible that such a business will be able to attract the potential customers. So, you should properly analyze this factor and make timely decisions to deal with such a situation.
More Industry Analysis Templates
5 Forces Industry Analysis Template
Detailed Industry Analysis Template
Formal Industry Analysis Template
Informative Industry Analysis
Cross Industry Analysis Template
Exclusive Industry Analysis Template
Typical Industry Analysis Template
Sample Industry Analysis Template
Environmental Industry Analysis Template
Competitive Industry Analysis Template
Introductory Industry Analysis Template
Industry Analysis Worksheet Template
Comparative Industry Analysis Template
Memorandum of Industry Analysis Template
Illustrative Industry Analysis Template
Importance of an Industry Analysis Report
Following are some of the key benefits and importance of an industry analysis report:
- It is used for making an investment decision.
- An industry analysis report is very important in order to succeed in a specific industry, particularly if you are new to a business.
- It helps in identifying potential threats to the business.
- It also helps in evaluating the potential opportunities to the business.
- Such an analysis helps the business to take reasonable steps and decisions for strengthening its position.
- An industry analysis report helps the company to sustain and remain consistent even in an extremely competitive business environment.
Importance of Industry Analysis Report in a Business Plan:
- It helps in gaining a better overall understanding of the business and its industry.
- It helps the companies to respond effectively to any changes in the industry.
- With the help of such an analysis, companies can take better decisions and make effective plans.
