Industry Analysis through 40 Questions (part 1)
Analysis of the industry is not only an important step in opening your own business, but also an important tool for conducting and developing your own business. Indeed, making an analysis of the industry (and its own business, in particular), the entrepreneur clearly understands where and in what to add, and in which he is ahead of the competition. It really helps to make the right decisions, agree. And making the right decisions is the main task of a successful entrepreneur. So let’s look at how to do the same industry analysis.
Want to do an industry analysis? Answer 40 questions
To make it easier to analyze the industry, here I will lay out 40 questions, by answering which you can already say: “That’s it! I did it! Industry Analysis Ready. ” Well, or something similar :-). The main thing for you is to understand the basic rules, trends and requirements of the industry. For clarity, we divide the questions into several groups.
1. What is the history of the industry? Has it existed for a long time, as such or not?
2. What is the growth of the industry as a whole? How fast is it developing (and is it developing at all)?
3. What, in your opinion and analysis, have the greatest impact on industry growth? Or vice versa, maybe something is interfering …
4. Who is the leader (s) in the industry? Why is he a leader, in your opinion? What are its advantages?
5. How is the industry regulated (by what laws, regulations, and everything that can affect the growth of the industry)?
6. What are the general sizes of the industry (in monetary and commodity terms)? That is, how many goods are produced in this industry and how much money is spinning? Naturally, you do not need direct, accurate estimates – this analysis is just for understanding the capabilities of the industry.
7. What are the trends in the industry over the past few years? According to your analysis, is it growing, standing still? Or, God forbid, fall?
8. What marketing tools are most used in this industry? Why do you think?
9. How is industry management usually arranged? Can you meet the given level?
10. What is the overall sensitivity and flexibility of the industry? According to your analysis, your industry will be able to quickly respond to changes in market requirements?
Consumers and potential customers in the industry
Consumers of goods and services should be at the center of any business analysis, industry analysis, including. Because it is precisely their requirements that a business must meet in order to be successful in principle. Therefore, try to find out as much as possible about your future (and not only) customers. Not even limited to the questions below.
11. What are the sizes of your audience? How many people can you offer your products and / or services?
12. What are the age-related indicators of your target audience? Age matters in the formation of UTP.
13. What is the ratio of men to women? This also matters in the formation of UTP.
14. What is the average market earnings for your target audience? Rather, what is the solvency of your audience?
15. Does consumer ethnicity affect the market and industry? If so, identify and analyze it too. It is enough to at least approximately determine the percentage.
16. Does marital status affect the market and industry? If yes, also define it as a percentage and analyze it.
17. Does the lifestyle of the audience matter? If you have, take into account when analyzing the industry.
18. What are the habits of customers in the industry? What is “usually” here?
19. Where are your potential customers geographically? How important is this in the industry? Make an analysis.
20. How difficult can it be to attract the attention of an audience?
21. How easy can buyers move from one seller to another in a given industry?