Industry analysis


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For full text article go to : Through this article on Industry Analysis get insights into the basics of industry analysis, how to carry out the same, Porter's five forces and lot more

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Industry analysis

  1. 1. Industry Analysis -by edu CBA
  2. 2. What is meant by “Industry Analysis”? Let’s Start with simple Presentation.
  3. 3. What is Industry Analysis  Industry analysis is a tool which enables a company to understand its position relative to other companies  Enables businesses identify the threats and opportunities facing them.  It helps them to focus resources on developing unique capabilities.  Helps in Forecasting Future Trends and Directions.
  4. 4. Major elements of Industry analysis Understanding the underlying forces at work Understanding the attractiveness of the industry Understanding the critical factors that determine success within the industry.
  5. 5. Ways to Perform Industry Analysis!!!
  6. 6. Ratio Analysis Porters Five Forces
  7. 7. Porter’s Five Forces Pressure that the suppliers can exert on businesses by raising prices or lowering quality or reducing product availability Threat that the new competitors pose to existing market players in the industry Bargaining power of the Supplier Threat of New Entry Pressure that the buyers can exert on businesses to provide them higher quality products, better customer service, and at lower prices It is the availability of a substitute product which the buyers can find instead of a core selling product. Threat of Substitution Competitive Rivalry Bargaining power of the Buyer It is the extent to which the competitive firms within an industry can pressurize each other
  8. 8. What is meant by Industry Attractiveness and Success factors Industry attractiveness is the presence or absence of threats which is exhibited by the industry forces. Success factors are the elements determining company’s success or failure in the given industry.
  9. 9. Future of the sector Demand and Supply Inflation Rate Important factors affecting Industry analysis
  10. 10. Benefits of Industry Analysis • Managers gain a better understanding of their business. • Allows Company to Position themselves. • Helps companies to better respond to any changes in the industry.
  11. 11. Knowledge is like a line With no ends… So To know in detail about this article click on the link below /accounting/industry-analysis-2
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  13. 13. Thank You!!! If you have found this Presentation to be useful, kindly Like Share Follow us!!!+