What are the objectives of industry analysis?
Industry analysis refers to the analysis of the industry’s environment that guides the industry to grow and survive in a competitive environment and gain a competitive edge in the industry as it predicts the future and changes in the market and analyzes the threats and opportunities in the way ahead and making decisions and planning
accordingly. It is one of the primary tasks of equity research analysts. In some companies, there’re dedicated teams who primarily do industry analyses and write reports on the same. In simple terms, industry analysis reveals the industry dynamics to the stakeholders. So it’s an essential part of creating a
competitive advantage for a companyCompetitive advantage refers to an advantage availed by a company that has remained successful in outdoing its competitors belonging to the same industry by designing and implementing effective
strategies that allow the same in offering quality goods or services, quoting reasonable prices to its customers, maximizing the wealth of its stakeholders and so on and as a result of which the company can make more profits, build a positive brand reputation, make more sales, maximize return on assets, etc.read more in the competitive market. You are free to use this image on your website, templates, etc, Please provide us with an attribution linkArticle Link to be Hyperlinked How to do an industry analysis?There’re many frameworks we can use to do industry analysis. But what’s more important is to follow a few steps and get to the point where one can use the frameworks to assess the correct picture of the industry. First, we will look at the steps you can follow, and then we will talk about the frameworks economists/equity research analysts can use to analyze the market/ industry.
ExamplesLet us apply some of the learning from the above step to industry analysis of the Automobile Sector, IT Services Sector, and Steel Sector, respectively.
How to write a report on Industry Analysis?The simple way to write a report is to follow the steps you used in the previous section. Here’s how you can write a report on Industry Analysis effectively –
While writing the report, it’s better if you use lucid language. If you would like to use any jargon, mention the meaning so that the readers don’t get stuck in between. ConclusionThis is a comprehensive guide on how you can conduct an industry analysis. If you learn these skills and prepare yourself for equity research analystsAn equity research analyst is a qualified professional who interprets financial information and trends of an organization or industry to provide recommendations, opinions, reports, and projections on the corporate stocks to facilitate equity trading.read more profile (conducting industry analysis plus writing the report), you’ll certainly have better prospects than your peers. The best way to learn is to do it in action. Just select an industry and follow the above steps to do the analysis in reality and write a report. If you happen to sit for an interview for an organization of the same industry, present the report along with your resume. You’ll see how much value addition would be for you during the interview and how it will help you uplift your candidature in front of the interviewers. Recommended Articles
What is in an industry analysis?About this report: Industry analysis reports contain a wealth of information specific to industry type. This includes current trends, opportunities, threats, challenges, and critical issues. They also contain financial benchmark information that may be used for comparison against those in the industry.
What is industry analysis state the objective and components industry analysis?An industry analysis consists of three major elements: the underlying forces at work in the industry; the overall attractiveness of the industry; and the critical factors that determine a company's success within the industry.
What is the importance of an industry environmental analysis?An environmental analysis helps organizations identify internal and external elements that can either negatively or positively impact their business. By looking at factors, such as the economy and technology, businesses can anticipate potential opportunities and threats.
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