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Understanding Your Business Environment Through Industry Analysis


Industry Analysis is one of the essential components – along with market research, competitive intelligence and SWOT analysis – to understanding an organizations overall business environment. The information gained from a structured and well documented industry analysis can help support key decisions made in all areas across an organization whether it be sales, marketing, business development, operations, technology or even human resources. In order to remain competitive in the marketplace, an organization needs to understand the various components and drivers of the industry in which they compete.

In addition to everyday decision making, industry analysis can also be an important input to other organizational processes such as strategic planning, balanced scorecard development, SWOT analysis and others. Industry analysis is a key piece component that helps support other organizational functions and processes.

Steps In An Industry Analysis
Although organizations approach and manage an Industry Analysis in different ways, there are some common elements across those approaches. The basic steps are as follows:
Define and validate the information need with stakeholders
Create a plan to gather, organize, synthesize and present the information
Conduct the collection and analysis
Produce the agreed upon deliverable or report
Present the industry analysis to stakeholders and get their feedback
Make the industry information available for others in the organization

The primary goal of an Industry Analysis, as with other research studies, is to generate actionable information that can be used by an organizations’ employees. This goal should be revisited at key steps in the process to ensure that what is delivered at the end meets initial expectations.

Benefits of Industry Analysis
There are numerous benefits to performing an Industry Analysis. Some of the larger benefits include:
More effective decision making
Improved strategic planning process
More effective SWOT analyses
Improved Sales and Marketing performance
Greater understanding of industry trends and performance drivers

Performing an Industry Analysis can be a time consuming and data intensive process. Specifically when it becomes a component of an overall competitive intelligence effort. That's why we've developed an online tool to help collect, synthesize and distribute industry information. To learn more about the benefits of this online tool, please visit our product information page.
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