As the owner or partner of a company or organization, you have the right and responsibility to evaluate how your company is doing and what kind of changes required as per the latest trends in the market. This tool is very helpful in making sure that the organization is moving in the right direction with the right speed and it becomes more crucial to evaluate the overall health and progress of the company when there are competitors in the market. Industry Analysis is a common tool used by manufacturers and producers to compare their progress with their competitors and to evaluate if any change in the strategies and policies is required.

Key Elements to follow for an Industry Analysis:

Reviewing available reports about the industry and its past
Making sure you approach the right industry and choose the right direction
Evaluating the demand and supply scenario
Analyzing the competition from similar companies in the market
Understanding the recent developments in the particular industry
Understand and analyze the industry dynamics more carefully

Guidelines for conducting Industry Analysis:

The key responsibility of an Analyst before conducting the research and analysis is to evaluate and understand the type of the industry. You can’t compare two or more companies together if you don’t know how a company operates and what kind of products it manufactures. Knowing the specific kind of industry and the type of products being made in the industry is a crucial element for a successful Industry Analysis.
A successful analysis can’t be done only by reviewing the present financial situation of the company but for this purpose, it is equally important to evaluate the past of the company. For this, you need to go in the history of the company and the history of the industry as well.
Another important element of this part is the projection making process. For completing the analysis, it is important to create a projection of the industry and predict how the future will turn for the company. This is relatively easy by reviewing the past and history of the company. The project part of the analysis also includes the particulars about the industry such as the scope of the industry in the future, what kind of changes will happen in the future, what kind of customers will approach to the industry in the future and what will be the more convenient ways to make more profit in this specific industry in the future.
Decision making is also a very important element of Industry Analysis and by doing this, you actually give a verdict about the future of the company and if it’s safe for the client to invest in the company or not. For example, if you are evaluating an industry for a client who is interested to invest in it and by evaluating you find out that there will be some huge changes in the future in that particular industry so you will suggest at the end of the report that it might be better for him to wait for a while before making a final decision.