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Strategic Industry Analysis

Strategic industry analysis involves an overview of strategic forces affecting a target industry, an analysis of strategies of companies in the industry, and forecasts and recommendations.

A strategic Industry analysis should answer the following questions.

How is the industry defined?

Are there historical events that continue to shape competition in the industry?

What is the product life cycle phase of the industry?

How rapidly is the industry evolving towards maturity?

Who are the major competitors? Do any have a competitive advantage?

Have competitors been consolidating or changing their business model?

Are new competitors poised to enter the market? Why?

What are the major customer segments? What are the demographics?

Have customer values been changing? If so, how?

What is the marketing mix for the industry?

Who are the major suppliers? How powerful are suppliers?

How are suppliers affecting the industry cost structure?

Are substitutes becoming attractive to customers? If so, why?

What issues and factors most affect the basis of competition? For example, how important is cyclicality, capacity, new technology, government regulation/ deregulation?

What are the opportunities for all or most firms currently in the industry?

What are the threats for all or most firms currently in the industry?



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