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Subject 1. Uses of Industry Analysis PDF Download

Companies in the same industry compete in similar product markets as sellers and in factor markets as buyers, so they tend to be exposed to the same demand and supply opportunities and risk factors.

Company analysis and industry analysis are closely interrelated. Company and industry analysis together can provide insight into sources of industry revenue growth and competitors' market shares and thus the future of an individual company's top-line growth and bottom-line profitability.

In industry and competitive analysis, analysts want to:

  • study the industry structural factors to understand the drivers of an industry's size, profitability, and market shares.
  • evaluate a company's competitive positioning in its industry.
  • improve forecasts and identify good investment opportunities.

Industry and competitive analysis steps

  • Define industry;
  • Industry survey - size, growth rate and character, profitability, and market share trends.
  • Industry structure - Porter's five forces analysis. What are the most important ones?
  • External influences - Political, economic, social, technological, leval, environmental influences.
  • Competitive analysis - competitive strategy of a company.

User Contributed Comments 3

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yearidsira Vigilante
farhan92 @yearidsira whats Arrow got to do with it?
RTDyer @farhan92 you have failed this city
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

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