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22 Cards in this Set
- Front
- Back
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is a market assessment tool used by businesses and analysts to understand the competitive dynamics of an industry. |
Industry Analysis |
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is the analysis of a specific branch of manufacturing, service, or trade |
Industry analysis |
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Types of Industry Analysis |
Competitive Forces Model (Porter's 5 Forces)Broad Factors Analysis (PEST Analysis)SWOT Analysis |
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One of the most famous models ever developed for industry analysis, famously known as Porter's 5 Forces, was introduced by Michael Porter in his 1980 book "Competitive Strategy: Techniques for Analyzing Industries and Competitors. |
Competitive Forces Model (Porter's 5 Forces) |
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Michael poter's book |
Competitive strategy |
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The number of participants in the industry and their respective market shares are adirect representation of the competitiveness of the industry |
Intensity of industry rivalry |
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This can particularly affect small businesses because it directly influences the quality and the price of the final product |
Bargaining power of suppliers |
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This indicates the ease with which new firms can enter the market of a particular Industry |
Threat of potential entrants |
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This is the case in an industry with more compositors but with a single buyer constituting a large share of the industry's sales |
Bargaining power of buyers |
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The industry is always competing with another industry procucing a similar substitute product. Hence all firms in an industry have potential competitors from other Industries. |
Threat of substitute goods/services |
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Broad Factors Analysis, also commonly called the PEST Analysis stands for Political, Economic, Social and Technological. PEST analysis is a useful framework for analyzing the external environment. |
Broad Factors Analysis (PEST Analysis) |
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Political factors that impact an industry include specific policies and regulations related to things like texes environmental regulation, tariffs, trade policies labor laws, nase of doing business, and overall political stability |
Political |
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The economic forces that have an impact include inflation, exchange rates (FX), interest rates, GDP growth rates, conditions in the capital markets (ability to access capital etc. |
Economic |
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The social impact on an industry refers to trends among people and includes things such as population growth, demographics (age, gender, etc. and trends in behavior such as health, fashion, and social mavements. |
Social |
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The technological aspect of PEST analysis Incorporates factors such as advancements and developments that change the way a business operates and the ways in which people live their lives (eg the advent of the internet! |
Technological |
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stands for Strengths, Weaknesses, Opportunities, and Threats. It can be a great way of summarizing various industry forces and determining their implications for the business in question |
SWOT Analysis |
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Characteristics of a business which give it advantages over its competitors |
Strengths |
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Characteristics of a business which make it disadvantageous relative to competitors |
Weaknesses |
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Elements in a company's external environment that allow it to formulate and implement strategies to increase profitability |
Opportunities |
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Elements in the external environment that could endanger the integrity and profitability of the business |
Threats |
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internal factors that already exist and have contributed to the current position and may continue to exist. |
Internal |
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External factors are usually contingent events. Assess their importance based on the likelihood of them happening and their potential impact on the company. Alse consider whether management has the Intention and ability to take advantage of the opportunity/avoid the threat |
External |
