Industry Analysis

• Industry = group of firms producing products/services that meet the same customer needs
• Industry Analysis = a tool for understanding how profits are distributed among market participants.
• Reasons for analysis
  • Identify opportunities to increase profits
  • Understand threats to existing profits
  • Decide to enter a market
  • Decide to exit a market
  • Assess the impact of a major industry change
  • Opportunity to shape the industry environment
• Michael Porter’s 5 + 1 Framework