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Introduction to
Industry Analysis
Definition of Industry
Classical Definition:
an industry is a group of firms
that produce similar products (or
services) to cater to a particular
market
GLOBAL
ECONOMY
NATIONAL
ECONOMY
INDUSTRY
FIRM
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Definition of Industry
Strategic Definition:
Industry is identified by the relevant market, which is defined by
substitutability on both the demand side and the supply side of the
industry
Automotive Industry
Relevant Market: Demand
Sedans Luxury Cars
vs.
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Automotive Industry
Relevant Market: Supply
By Vehicle Type
• Cars/sedan
• AUV
• SUV
• Vans
By Passenger or
Seating Capacity
• 5-seater
• 7-seater
• 12-seater
By Fuel Type
• Gasoline
• Diesel
• Electric
• Hybrid
Conducting an Industry
Analysis
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Steps in Conducting an Industry Analysis
1. Determine what you are looking for - get a general
overview of the industry
2. Have a framework for systematically collecting raw data
3. Sequentially develop data in each area
4. Organize and analyze data
Get a General
Overview of the
Industry
• define the industry & delineate scope
• identify industry participants (leading firms & key competitors)
Have a
Framework for
Systematically
Collecting Data
• identify areas that need to be studied
• develop an outline
Sequentially
Develop Data in
Each Area
• after getting a general overview of the industry, focus on specifics
• look at published sources
• gather field data
Organize and
Analyze Data
• apply framework for industry analysis
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Industry Definition & Scope
• an industry is a group of firms that produce similar
products or services to cater to a particular market
CLASSIFICATION PUBLICATION/SOURCE
by commodity or product Philippine Standard
Commodity Classification
(PSCC)
by activity Philippine Standard
Industrial Classification
(PSIC)
• an industry can be classified by product or activity:
Philippine Standard Commodity
Classification (PSCC)
detailed classification of all
commodities on imports and
exports being used for tariff and
statistical purposes
First Level Chapter 2 digits
Second Heading 4 digits
Third HS
Subheading
6 digits
Fourth AHTN
subheading
8 digits
Fifth PSCC Codes 10 digits
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Example:
• Sugar & Sugar Confectionery17
• Cane or beet sugar & chemically pure sucrose in
solid form1701
• -- Other1701.99
• ----White1701.99.11
Philippine Standard Industrial
Classification (PSIC)
• detailed classification of
industries prevailing in the
country according to the kind of
productive activities undertaken
by establishments
• presents a hierarchy of
categories of industries, with 5
levels of disaggregation
Section 1-digit capital letter code
Division 2-digit numeric code
Group 3-digit numeric code
Class 4-digit numeric code
Sub-Class 5-digit numeric code
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Example:
• WHOLESALE AND RETAIL TRADE; REPAIR OF MOTOR
VEHICLES AND MOTORCYCLESSection: G
• Retail trade, except of motor vehicles and motorcyclesDivision: 47
• Retail sale of information and communication equipment
in specialized storesGroup: 474
• Retail sale of computers, peripheral units, software and
telecommunications equipment in specialized storesClass: 4741
• Retail sale of computersSub-class: 47411
DATA SOURCES
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Two Types of Data
1. Primary or Field Data
2. Secondary or Published Data
Primary or Field Data
• Information gathered first-hand from surveys
• Interviews with:
a) Industry players/participants
b) Industry associations
c) Service organizations (consulting or auditing firms, banks)
d) Related industries- individuals or firms in adjacent businesses
to the industry (suppliers, customers, distributors)
e) Industry or third-party observers (industry experts, financial
analysts, economists, government officers)
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Things to Remember:
Try to interview individuals in all major groups (to get different perspectives and to cross-check
or verify data)
Industry participants help researcher identify issues or industry trends; but may be subjective
If source is a direct participant in the industry, he/she may not willingly divulge confidential or
sensitive information
Third party observers are usually more open and provide unbiased overview of the industry
field sources can suggest other sources of information
Secondary or Published Data
Information or data gathered from:
a) Industry Studies – studies made by economists or consulting firms
b) Trade Associations – compile industry data and statistics
c) Articles from Trade Magazines – trade publications
d) Business Press/ Financial Magazines/Newspaper Articles
e) Annual Reports and other company documents - documents/ financial
statements submitted to the SEC; speeches and press releases, product
literature, manuals, etc.
f) Company Directories – provides list of industry participants and contact
information; may sometimes contain limited financial information
g) Government sources – reports and statistics
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Things to Remember:
Look for references to other sources (i.e., citations to other articles or individuals)
Keep a thorough bibliography of all data/information gathered (take full citation of the source)
to avoid duplication of efforts and track where information came from
Make summary notes for each source to minimize re-reading of materials
Published data may have limitations such as: timeliness (information may be dated); level of
aggregation (can be too broad or aggregated); depth
DATA PUBLICATION SOURCE
Macroeconomic Data
(i.e., Gross Value Added)
• National Income Accounts
• Phil. Statistical Yearbook
Philippine Statistics
Authority (PSA)
Employment/
Number of Firms/
Productivity
• Annual Survey of Philippine Business &
Industry
• Census of Philippine Business & Industry
• Monthly Integrated Survey of Selected
Industries
• Labor Force Survey
Labor Statistics
PSA
DOLE – BLES*
Financial Data/
Ranking of Companies
Top 1,000 Corporations Securities & Exchange
Commission (SEC)
Business World
Phil. Business Profiles
Investments DTI, BOI, SEC, BSP
Trade (Exports & Imports) Foreign Trade Statistics PSA, DTI
Prices (CPI, retail
& wholesale)
PSA
