What is an industry analysis?
In short, an industry analysis is a market analysis that looks at how your company compares to others in your niche. Going beyond standard market research, an industry analysis takes a deep dive on every aspect of your company and how it stacks up to others. This could mean comparing how your company pays employees to how competitors pay, how your return on investment (ROI) compares to others, if your new products are competitive with others on the market and so on.
You might think you can simply read available industry research. While this is true, an industry can change overnight, meaning a report you read a week ago can already be old news.
Whether you’re entering an industry for the first time or looking for ways to take your business to the next level, it’s important to conduct regular industry analyses to get the most relevant information. Essentially, an industry analysis is meant to help you review market and financial factors in your industry and track your competition.
The beauty of industry analyses is they’re useful in fields ranging from manufacturing to retail, and involve multiple factors including geographical area, industry outlook, regulatory environment and target market. Even better, an industry analysis is relevant for small businesses and large corporations. By investigating and analyzing your competitors, you can determine the best strategies for achieving business success.