How to Write an Industry Analysis Report

Show that there is a wide market for your business proposition. To do this, you need to know the relevant market size. The relevant market size is the company’s potential sales when capturing the entire niche. For example, if selling electric cars, the market size is not all car drivers or all the people in this world who want to buy a car because of the need to move but it is the total number of electric vehicles sold in a given period. given year.

• Carefully analyze any assumptions used for your market analysis. This is especially important with a new product or one that is gaining rapid adoption.
• The relevant market size should be taken into account both in terms of cash value and sales volume. In the above example, the relevant market size could be VND4,400 billion or 30,000 electric vehicles.

Review industry development trends. Asking important questions will help you consider industry trends. Besides obvious factors like competition from rival companies and customer tastes, you should also consider the impact of globalization and technological innovation. The regulatory environment and economic situation at the global, national and local levels also need to be taken into account. Some other questions include:

• How has the market size changed over the years? Within 5 years? Within 10 years?
• What is the expected development of the relevant market?
• What factors will affect the development of the market? Are new demographics affecting the market? Are demographics changing?

Consider industry entry or expansion barriers. ^[4] Barriers can take the form of market competition and can also manifest in financial or human resource deficiencies, legal and copyright limitations. For example, if you plan to penetrate or expand the chip production line, you will need to invest several tens of billions of dong in machinery and equipment. What’s more, you need computer engineers and programmers to manufacture and design. The object of competition with other companies in the industry will not only be customers but also human resources. All of them need to be considered when considering barriers to entry into the industry.

Provide a description of major industry competitors. ^[5] Use detailed statistical information on revenue, human resource strengths and products. Present their past business decisions, upcoming products and marketing strategies. Includes raw material, manufacturing and legal analysis. The analysis of the company should be as comprehensive as possible. Competitive advantages and disadvantages can arise from all sides.

• Does your competitor use large billboards, radio, TV, network or print ads? How much of each shows effectiveness? See if your company can match or compete with them in terms of marketing.
• Consider recent innovations or mistakes that your competitors have made. Learn from their failures and grow based on their successes.

Position your company in the industry. Using a developed outline, with information about the competition, barriers to entry or expansion, industry trends and available customer attention, you can showcase how your company is positioned in the industry. industry and compared with other competitors. Include statistical information about your business and be honest about the advantages and disadvantages the company will face.

Start the report with a broad description of the industry. Start with industry history. Write a paragraph or two about the size, product, and geographic coverage of the industry, including manufacturing and customer centers. Next, introduce your own position within the larger industry and go into detail about why industry trends make your business proposition necessary.

• Identify the current stage in the industry lifecycle. Is it: ^[6]
  • Just appeared? (very new industry, growing less than 5% a year)
  • Developing? (a period of slow growth at a rate of slightly more than 5% a year)
  • Fluctuations? (the stage of development at which companies merge or merge and/or several companies fail)
  • Ripe? (growth slows down, to less than 5% a year)
  • Decline? (the period at which there is no growth for a long time)

Provide market analysis. Present industry development expectations, product trends, technology and factors affecting competition. Describe the competitive picture in general. The rest of the business plan will evolve based on this competitive situation.

• Healthy industries are fast-growing and generally profitable industries with a stable customer base and few barriers to entry. Industries that are declining, generally unprofitable, highly competitive, and difficult or controlled to enter should be avoided. ^[7]

Describe customer views and demographic information. This analysis should show what are the major customer groups and the specific characteristics of each group. What is the age of the target customer? What is their race and ethnicity? What are their needs and desires?

• Put yourself in the customer’s shoes. Think about what they saw and felt when they first heard about or interacted with your product or service. Consider how they think about their options.
• In addition to looking at your existing customer base, consider ways you can expand your product or service to attract new customers or entice customers from your competitors.

Use analytics to present a strategy for the near future. Present the strategy more thoroughly in the rest of the business proposal. Include a detailed timeline and specific goals you hope to achieve, such as sales and market share. Recommend marketing strategies, product development ideas and HR issues that can help the company find a foothold and grow in the industry.

• You can end with a call to action. A statement such as: “Based on the current situation of the market, the following business proposal should be implemented” along with a brief outline of the proposal can be a smooth transition to the rest of the business. plan.