An industry analysis report is a document that evaluates the industry and the companies involved in it. Industry analysis reports are often part of a business plan to determine how a company can take advantage of an industry by understanding the industry's history, trends, competitors, products and customer base. In addition, this type of report helps investors, bankers, customers to understand the components of the industry. Once the research is done and the framework for the report is built, you are ready to write the report.
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Part 1 of 3: Identifying Research Resources
Step 1. Define the scope of your analysis
You might examine the industry as a whole or just one segment targeting a specific subset of the market. For example, you could examine the petrochemical industry as a whole or a segment of it, such as petroleum refining. Whatever the scope of analysis, you need to identify companies that provide products or services similar to yours.
You may need to do cross-industry research. For example, a video game developer may need to collect statistics from the console, PC, and handheld game markets
Step 2. Research your industry with an independent government agency
Government data centers contain large volumes of statistical information on various sectors of the economy. You can try contacting the Central Statistics Agency (BPS) to see if the agency already has the information you want or if new research is needed.
Also, try searching the internet for data center agencies and other agencies by entering keywords like “government statistics [industry name]” to find relevant information
Step 3. Compile the results of your independent research
Consult at least two independent research reports with your market data. Contact private data collection agencies or industry unions to find published reports or market analysis relevant to your research.
You can also consult with experts in your company. It should also be borne in mind that the assessment may be biased or unreliable
Step 4. Look for data association data
There may be several trade associations in your industry. For example, if you are in the textile industry, please ask the Indonesian Textile Association. Regardless of the industry, consult trade groups and industry publications to identify info as background material for your industry analysis.
Step 5. Consult academic research
Look at academic databases for published studies in the research area. You can try searching on Ebsco or Sciencedirect for free published academic journals.
Step 1. Show that there is a large market for your business proposal
To do this, you need to know the size of the relevant market. The relevant market size is the company's sales potential if it captures the entire market. For example, if you sell electric cars, your relevant market size is not all motorists, or people who travel long distances and so drive frequently, but the total of all electric car sales in the year under study.
- Make sure you have carefully analyzed all the underlying assumptions that your market analysis relies on. This is especially important for new products or products that are selling fast.
- the relevant market size must be calculated in rupiah and units. For example, let's say the market size is $2,000,000,000 per year, or 30,000 electric cars.
Step 2. Consider industry trends
You should consider things that have influenced industry trends to date, such as the impact of globalization and technological innovation, competition from other companies, and consumer tastes. Regulatory conditions and economic conditions at the global, national and local levels also need to be considered. Other things to consider for example:
- How fast does the market size change in one year? Five years? Ten years?
- What is the relevant market size growth expectation?
- What are the factors influencing market growth? Is the new demographic impacting the market? Are market demographics changing?
Step 3. Consider industry entry barriers or market expansion
Barriers can be market competition, but they can also be lack of funds or talent, or regulatory and patent barriers. For example, if you enter or expand into a microchip product line, you need billions of rupiah worth of equipment and machinery. What's more, you need engineers and programmers to manufacture and design chips. Other companies will compete not only on your customers, but also on your employees. All of these things need to be considered when determining barriers to industry entry.
Step 4. Provide a description of the major competitors in the industry
Use detailed statistical information on income, workforce, and products. Show their past business moves, future products, and market strategies. Include sourcing, manufacturing, and regulatory analysis. The company analysis should be as complete as possible; Competitive advantages and disadvantages can arise from anywhere.
- Does the competition use billboards, radio, television, internet, or print ads? Which methods are effective? State whether your company can compete with other companies' marketing levels.
- Know the latest innovations or mistakes made by competitors. Learn from the mistakes and successes of competitors.
Step 5. Determine your company's position in the industry
Use the developed framework, along with information on competitors, barriers to expansion or implementation, industry trends, and availability of consumer attention, to determine the company's position in the industry and compare it to competitors. Include statistical information about the business and be honest about the advantages and disadvantages the company faces.
Part 3 of 3: Writing Analysis
Step 1. Begin the report with a broad description of the industry being analysed
Open a paragraph with industry history. Write a paragraph or two about the size, product, and geographic scope of the industry, including manufacturing and consumer centers. Next, show your company's position within the larger industry context, and foreground how industry trends can make implementing a business proposal look lucrative.
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Determine the current stage of the industry cycle. Is the industry:
- Just appeared? (the industry is still very new and growing at less than 5% per year)
- Grow? (industry is growing steadily at a little more than 5% per year)
- Shake? (the company will undergo a merger or consolidation, and/or another company will experience a collapse)
- Mature? (company growth slows to less than 5% per year)
- Decrease? (no growth over a long period of time)
Step 2. Provide a market analysis
Show industry growth expectations, product and technology trends, and factors influencing competition. Describe the competitive landscape in general. The rest, the business plan will outline the state of the competition.
The healthcare industry is growing rapidly and is generally profitable with a stable customer base and an easy-to-enter industry. Companies should avoid industries that are declining in growth, are unprofitable, highly competitive, or difficult to enter
Step 3. Describe customer views and demographic information
The market analysis should explain who the largest customer groups are and the uniqueness of each group. How old are the targeted customers? Are the races and ethnicities targeted? What are their wants and needs?
- Put yourself in the shoes of a customer. Think about what customers saw and experienced when they first encountered your product or service. Consider the way customers think in choosing a product or service.
- In addition, consider your current customer base, think about how to expand your product or service to attract new customers and retain existing ones from competitors.
Step 4. Use analysis to strategize for the future
Describe the strategy in detail in your business proposal. Include a detailed timeline and specific goals, such as revenue and market share you want to achieve. Describe marketing strategies, product development ideas, and workforce issues that affect your company's growing position in the industry.
Please close the report with a suggestion. Statements such as “Based on the current state of the market, it is recommended to implement the following business proposal” followed by a rough outline of your proposal so that the transition to overall planning can be carried out smoothly
Step 5. Review your report
Compact your reports to the right size and easy to manage. Industry analysis reports are usually 2-3 pages long. Set the length of the report based on the way it is presented. If the report is part of a business plan, it's a good idea to keep the analysis report short and to the point. If the report will be presented independently, you are more free to report detailed data and details.
Tips
- Since industry analysis reports are often part of a business plan and are meant to indicate how a company is maximizing its profits, the end of your report is the most important.
- Be sure to do a full investigation before finalizing the report.
- Industry analysis is not just an analytical report; all information must be provided with the aim of ensuring the continuity of the company.
