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NAME – KETAN RANA(A3221514005) SHIKHAR SHIKH AR AGGRAWA AGGRAWAL(A322 L(A32215140) 15140) SHREY TIWARI(A3221514 TIWARI(A3221514088) 088) PROGRAM – BBA LLB(H) TOPIC – INDUSTRAIL ANALYSIS

WHAT IS INDUSTRY? Economic activity concerned with the processing o raw materia!s and man"act"re o goods in actories# WHAT IS ANA$YSIS? A systematic e%amination and eva!"ation o data or inormation& 'y 'rea(ing it into its component parts to "ncover their interre!ationships# )pposite o synthesis#

industry analysis  Industry analysis is a tool that facilitates a company's understanding of its position relative to other companies that produce similar products or services. Understanding the forces at  work in the overall industry is an important component of effective strategic planning. Ind"stry ana!ysis*a!so (nown as +orter,s -ive -orces Ana!ysis*is a very "se"! too! or   '"siness strategists# It is 'ased on the o'servation that proit margins vary 'etween ind"stries& which can 'e e%p!ained 'y the str"ct"re o an ind"stry# The -ive -orces primary p"rpose is to determine the attractiveness o an ind"stry# However& the ana!ysis a!so provides a starting point or orm"!ating strategy and "nderstanding the competitive !andscape in which a company operates# +orter,s -ive -orces Ana!ysis The ramewor( or the -ive -orces Ana!ysis consists o these competitive orces. •

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Ind"stry riva!ry /degree o competition among e%isting irms0*intense competition !eads to red"ced proit potentia! or companies in the same ind"stry Threat o s"'stit"tes /prod"cts or services0*avai!a'i!ity o s"'stit"te prod"cts wi!! !imit yo"r a'i!ity to raise prices 1argaining power o '"yers *power"! '"yers have a signiicant impact on  prices 1argaining power o s"pp!iers *power"! s"pp!iers can demand premi"m  prices and !imit yo"r proit 1arriers to entry /threat o new entrants0*act as a deterrent against new competitors

 Industry analysis and competition 2ompetition  within an ind"stry is gro"nded in its "nder!ying economic str"ct"re# It goes  'eyond the 'ehavio"r o c"rrent competitors# The state of competition in an ind"stry depends "pon ive 'asic competitive orces# The co!!ective strength o these orces determines proit potentia! in the ind"stry# +roit potentia! is meas"red in terms o !ong3term ret"rn on invested capita!# Dierent ind"stries have dierent proit potentia!*4"st as the co!!ective strength o the ive orces diers 'etween ind"stries# Ind"stry ana!ysis as a too! to deve!op competitive strategy Ind"stry ana!ysis ena'!es a company to deve!op a competitive strategy that 'est deends against the competitive orces or in!"ences them in its avo"r# The (ey to deve!oping a competitive strategy is to "nderstand the so"rces o the competitive orces# 1y deve!oping an "nderstanding o these competitive orces& the company can. • • • •

High!ight the company,s critica! strengths and wea(nesses /SW)T ana!ysis0 Animate its position in the ind"stry 2!ariy areas where strategic changes wi!! res"!t in the greatest payos Emphasi5e areas where ind"stry trends indicate the greatest signiicance as either opport"nities or threats

Ind"stry ana!ysis and str"ct"re The ive competitive orces revea! that competition e%tends 'eyond c"rrent competitors# 2"stomers& s"pp!iers& s"'stit"tes and potentia! entrants*co!!ective!y reerred to as an e%tended riva!ry*are competitors to companies within an ind"stry# The ive competitive orces 4oint!y determine the strength o ind"stry competition and  proita'i!ity# The strongest orce /or orces0 r"!es and sho"!d 'e the oca! point o any ind"stry ana!ysis and res"!ting competitive strategy# Short3term actors that aect competition and proita'i!ity sho"!d 'e disting"ished rom the competitive orces that orm the "nder!ying str"ct"re o an ind"stry# A!tho"gh these short3 term actors may have some tactica! signiicance& ana!ysis sho"!d oc"s on the ind"stry,s "nder!ying characteristics#

 PEST AND SWOT ANALYSIS 

Every company in a '"siness has certain ramewor(s that they o!!ow in order to "nderstand the mar(et they are catering to# They "s"a!!y (eep on chec(ing the nerve o the mar(et where they want to oc"s their prod"cts "pon# 2ertain companies carry o"t ie!d wor( in orm o  mar(et research thro"gh which they cond"ct s"rveys or emp!oy other techni6"es 'y which to ga"ge the mar(et needs and trends# Then there are other ana!ysis methods that a!!ow or a more ho!istic approach towards determining trends and then setting strategies# -rom a strategic management,s perspective& there are certain too!s that permit the (now!edge o the mar(et and the s"rro"nding environment in depth& '"t the most amo"s ones are +EST and SW)T ana!ysis#

+EST ana!ysis& which many reer to as a deeper approach into the mar(eting environment consists o +o!itica!& Economic& Socia! and Techno!ogica! eat"res o a mar(et# A more  pro!onged orm o this ana!ysis is ca!!ed +EST$E& which incorporates the aspect o  $ega! and Environmenta! actors aecting the mar(etp!ace# +EST$E ana!ysis is a detai!ed view o the environment a '"siness is sit"ated in# It can 'e right!y ca!!ed a 'ird,s eye view where a company or an individ"a! tries to ascertain speciic trends o the mar(et rom a macroeconomic perspective# These actors are ma4or determinants o strategic deve!opment and deine how cond"cive an environment is within which a '"siness strives to thrive# Their detai!s are given 'e!ow. •

+o!itica!. It acco"nts or a!! the in!"ences that a government may have "pon the  '"siness environment& inc!"ding '"siness cyc!es& the economy at !arge and individ"a!  '"siness ind"stries# Ta% reorms& isca! po!icies and trade taris orm part o this ana!ysis#

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Economic. This ana!y5es the economy as a who!e and its perormance owing to g!o'a! trends and !ong term eects that may 'e evident# In!ation rates& interest rates& economic growth& demand and s"pp!y trends are a!! ana!y5ed "nder this head#

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Socia!. This charts the ana!ysis o c"!t"ra! trends& demographica! determinants& age distri'"tion etc#

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Techno!ogica!. This ana!yses the techno!ogica! trends o the '"siness environment# It acco"nts or the rate at which the innovations are occ"rring and how direct!y and indirect!y they,re in!"encing the '"siness yo",re in#

$ega!. There are many !aws and po!icies that direct!y impact the way yo"r '"siness is r"n and the decisions that "e! its prop"!sion# These !aws can 'e socia! !aws& reg"!atory !aws& certain standards that need to 'e met and other s"ch !aws# 7

Environmenta!. Yo"r '"siness has eects in the environment it operates in& thereore yo" need to ana!y5e in depth what imp!ications yo"r '"siness might 'e having on it# )n the other hand& the environment a!so in!"ences yo"r '"siness direct!y or  indirect!y especia!!y the to"rism& arming or agric"!t"re '"siness# Thereore these actors acco"nt or the geographica! !ocation& weather& c!imate etc# '"t are not 4"st !imited to the st"dy o these on!y#

+EST$E can 'e right!y ca!!ed a thoro"gh view on the e%terna! environment in which an organi5ation is operating in# )n the contrary tho"gh& SW)T ana!ysis is the ana!ysis on the interna! environment o the company 'ased on its prod"cts etc# SW)T tends to 'e more prod"ct8service speciic as an individ"a! or an entity cond"cts this ana!ysis 'ased on that prod"ct8service# The components o the SW)T ana!ysis are. 7

Strengths. The S in the acronym stands or Strengths# 9"ch to do with the name& it ana!yses the company,s strengths in !ine with the prod"ct8service and co"nts the US+ /"ni6"e se!!ing propositions0 that it has# Strengths o a company or a prod"ct ma(e it stand o"t when in comparison with their competitors#

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Wea(nesses. The W stands or Wea(nesses# It acco"nts or a!! the c"rrent wea(nesses that the company may have or may 'e acing and how the prod"ct eat"res them# It gives the company the view rom an e%terna! standpoint where they can "nderstand what their areas o !ac(ing and then wor( "pon them to remove them rom their  interna! environment#

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)pport"nities. ) spe!!s o"t )pport"nities# These opport"nities are or the company to gain& master and then derive 'eneits rom# Us"a!!y& wea(nesses are re!ected here with a strategy to enco"nter them as opport"nities where the company can wor( "pon itse! or the prod"ct8service#

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Threats. Threats& denoted 'y T ta(e into acco"nt the threats that a'!e and potentia! competitors pose or the company and its prod"cts8services# These a!so ana!y5e the  'arriers to entry and how potentia! competition can 'e tac(!ed eective!y#

1oth these meas"res give an in3depth view to the company regarding the environment they,re in or are a'o"t to enter and a!so a'o"t the prod"cts or the services with which they p!an to enter the mar(etp!ace#

Benefits of industrial analysis The (ey advantage o accomp!ishing an ind"stry ana!ysis is that the company managers o'tain a 'etter "nderstanding a'o"t the position o their '"siness in the respective sector# This a!!ows the '"sinesses to spot themse!ves vigi!ant!y in the speciic ind"stry where they can serve a niche mar(et or proer a partic"!ar prod"ct8service that provides them a 'eneit over  competitors# The ana!ysis is a!so he!p"! to the companies respond in a 'etter way to changes in the ind"stry#

Importance of industry analysis The ind"stry ana!ysis is an important e!ement o a '"siness p!an# It is important or the  '"siness owners to "nderstand the ind"stries in which they operate to g"arantee "nre!enting s"ccess# The inancia! hea!th o a company is genera!!y an indication o the company,s hea!th# Thereore& 'y carrying o"t an ind"stry ana!ysis& the '"siness owners can orm a strategy which is more !i(e!y to assist the '"siness in growth and s"ccess# 9oreover& ind"stry ana!ysis is he!p"! or the p!anners in positioning their '"siness in the niche mar(et or the prod"cts and services oered 'y them# Another reason indicating the importance o ind"stry ana!ysis !ies in the act that it aids the companies in recogni5ing the potentia! opport"nities or the '"siness to deve!op& in addition to threats that co"!d 'e an o'stac!e in the growth o the company# 1eing capa'!e o  congregating re6"irement o a cons"mer& which is e!se wise "ndeserved& may 'e an opport"nity# 2onverse!y& high capita! costs or strict government r"!es on e%ports and imports can 'e considered as e%amp!es o pro'a'!e threats in dierent ind"stries#

T! "#!$" %!&!""' *+ &+%,-&#.%/ ' #++-/ .%,-"# '%'"."# 1. Getting Ready 2ond"cting detai!ed research is the irst step in an ind"stry ana!ysis# :enera!!y&  '"sinesses have the option o either hiring an o"tside irm to gather data or  perorming their own research# -ort"nate!y& a great dea! o competitor research can 'e accessed easi!y i yo" (now where to !oo(# I yo" decide to do it yo"rse!& start 'y compi!ing a !ist o yo"r competitors# Ne%t& determine the 6"estions yo" want to answer d"ring yo"r ana!ysis# Some o the most common 6"estions to as( may inc!"de. •

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What products and services do my competitors ofer? Do my competitors target the same markets and audiences that I do?

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Are my competitors making money?

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How ast are my competitors growing?

Additiona!!y& '"sinesses sho"!d assess where their competitors ran( on actors !i(e c"stomer service& 6"a!ity o goods and prices# The goa! is to event"a!!y determine how yo" can disting"ish yo"r '"siness rom competitors whi!e achieving the desired proits# 2. Examining Your Competitors )nce yo",ve determined the goa!s o yo"r ana!ysis& it,s time to co!!ect act"a! data# Whi!e yo" can gather a great dea! o va!"a'!e inormation rom secondary so"rces !i(e 4o"rna! artic!es and mar(eting reports& don,t over!oo( !ess o'vio"s reerences& s"ch as competitor advertisements and prod"ct 'roch"res# These doc"ments can oer "se"! insight into competitors, pricing a!ong with their advertising '"dgets and most mar(eta'!e prod"ct eat"res#

Additiona!!y& ta(e time to review yo"r competitors, inancia! data# -ee! ree to visit competitors with 'ric(3and3mortar !ocations# Whi!e yo" sho"!d rerain rom "sing dishonest tactics to gather ino& as(ing other '"siness owners 6"estions as tho"gh yo" were a c!ient is a wide!y accepted practice or cond"cting an ind"stry ana!ysis# Yo" can a!so o'serve prod"ct p!acement within

the store& and even p"rchase a ew items to see how they stac( "p against yo"r own# . Analyzing Competitive Data Ater co!!ecting competitor data rom vario"s so"rces& yo" can 'egin ana!y5ing it to orm conc!"sions# The goa! is to determine yo"r competitors, strengths and wea(nesses whi!e eva!"ating how yo"r own '"siness stac(s "p#

A (ey part o the ana!ysis step invo!ves assessing a prod"ct or service itse!# 1egin 'y !isting o"t the top eat"res o yo"r vario"s prod"cts or services# Ne%t& note whether or not yo"r competitors oer those eat"res# +ay c!ose attention to the prod"cts or services that yo"r target a"dience sees as most important# Additiona!!y& yo" sho"!d note how we!! those eat"res wor( and whether c"stomers ee! that these 'eneits meet their c"rrent needs# Are there things that yo"r oering does 'etter than the competition& or vice versa? Answering that 6"estion co"!d he!p yo" oer a 'etter prod"ct or service# Stay a'reast o yo"r c"stomers, good and 'ad points and !oo( or p!aces where yo"r '"siness can shine# !. Evaluating Your Position Eva!"ating competitors, strengths and wea(nesses a!so ena'!es yo" to identiy yo"r own p!ace in the mar(et# A!ong with pinpointing advantages yo"r company has over the competition& yo" can identiy "t"re pro'!ems 'eore they mat"re into crises and ad4"st strategies according!y#

-or e%amp!e& yo" may need to revise prices& add eat"res or e%p!ore dierent mar(ets or yo"r goods to stay ahead# The goa! is to a!ign yo"r ind"stry ana!ysis with a demographic st"dy o yo"r target c"stomers so yo" can ma(e the most ed"cated decisions moving orward# Yo" can,t p!an or yo"r company,s "t"re eective!y "nti! yo" irst determine the p!ace yo" occ"py re!ative to yo"r competition# A thoro"gh ind"stry ana!ysis is cr"cia! to achieving s"ccess in the '"siness wor!d# 1y assessing yo"r competitors& yo" can identiy mar(et niches and ig"re o"t 4"st what it is that yo"r target c"stomers desire#