Step 1: Definition and delimitation of the industry
The first step in an industry analysis is to clearly define and delimit the industry.
This should be clarified:
- What products or services does the industry cover?
- What is its geographical scope (local, national, international)?
- Which companies are the main players?
A precise definition is important in order to correctly assess the relevant market conditions and competitors.
Step 2: Market size and market development
To assess the potential of an industry, its market size and growth should be analyzed.
Important key figures are:
- Total turnover of the industry
- Growth rates in recent years
- Forecasts for the future
- Market drivers and barriers
Industry reports, market studies and statistical data sources can be helpful here.
Step 3: Competitor analysis
A central component of the industry analysis is the examination of competitors.
A frequently used method is Michael Porter’s five forces analysis.
It analyzes:
- Competitive intensity – number and strength of competitors
- Threat from new suppliers – barriers to entry and market access
- Bargaining power of suppliers – dependence on suppliers
- Bargaining power of customers – influence of buyers on prices and quality
- Threat from substitute products – threat from alternative products or services
This analysis shows how attractive and competitive an industry is.
Step 4: Customer analysis
In order to understand the market, it is important to examine the customer structure and their behavior.
This includes:
- Target groups and their needs
- Purchasing behavior and decision factors
- Trends and changes in consumer behavior
The better a company knows its customers, the more targeted it can develop marketing and sales strategies.
Step 5: Regulatory and economic framework conditions
Industries are often dependent on legal and economic framework conditions.
Important factors are:
- Legal regulations (e.g. environmental regulations, data protection)
- Tax and financial incentives or hurdles
- Economic developments and trends
These external factors have a significant impact on the profitability and growth potential of an industry.
Step 6: Technological developments and innovations
Technological advances can significantly change an industry.
Companies should therefore consider the following aspects:
- New technologies and their impact on existing business models
- Digitalization and automation
- Research and development trends
Those who recognize technological developments early on can secure competitive advantages.
Conclusion
A comprehensive industry analysis is crucial for the success of a company.
It makes it possible to identify market opportunities, minimize risks and make well-founded strategic decisions.
By systematically examining market size, competition, customer behaviour, regulatory framework conditions and technological trends, a company can optimize its positioning and hold its own against the competition in the long term.
Those who understand the market have a clear advantage – and can align their strategy accordingly.
