Industry Analysis

This guide is intended to assist you with your research as you perform an analysis of your business industry. The following steps should be used as a template to report major finings and organize your research.

 


 Several key factors must be considered as you analyze your industry: 

  • Geographic Area – local?, regional?, statewide?, national?, international?
  • Industry – Size, trends, outlook
  • Product
  • Buyers – Target customers
  • Regulatory Environment
  • Company Information – Identify and research most successful businesses

Conduct and Industry Analysis

  1. Determine the Standard Industrial Classification (SIC) Code and/or NAICS Code for the industry.
  2. Create and industry overview and include:
    • A brief history
    • Factors that effect growth
    • Government Regulations
    • Leading Businesses in the Industry
  3. Resources: (Available at your local library)
    • Standard & Poor’s Industry Surveys
    • US Industry & Trade Outlook
    • Encyclopedia of Emerging Industries, Gale Research
    • Encyclopedia of American Industries, Gale Research
  4. Internet Resources (Free or for Purchase)
    • Trade Associations – You can find appropriate associations in Encyclopedia of Associations or a general Internet search)
    • Hoover’s Online – Companies and Industries Section
    • MarketResearch.com – Retailer of private market research reports
  5. Include industry trends, statistics and educational materials
    • Estimated size of the industry – Dollars?, Products or Services sold?
    • Established trends in sales over recent years
    • Determine current operational/management trends within the industry
    • What types of marketing strategies are prevalent within the industry?
    • Is the industry seasonal?
    • Is the industry sensitive to economic fluctuations?
  6. Resources: (Available at your local library)
    • Standard & Poor’s Industry Surveys
    • US Industry & Trade Outlook
    • Encyclopedia of Emerging Industries, Gale Research
    • Encyclopedia of American Industries, Gale Research
  7. Internet Resources (Free or for Purchase)
    • Trade Associations – There may be more than one per industry
      • Ask specific questions such as “How large is the textile market in North Carolina in terms of dollars? Or “Do you have a list of food disributors available for the Midwest?”
    • ZapData – D&B Offers free statistical inquiry data on their website
    • BizStats
    • SBDCnet
    • Hoover’s Online – Companies and Industries Section
    • MarketResearch.com – Retailer of private market research reports
  8. Resources: (Available at your local library)
    • Literature searches of newspapers, journals and magazines. The local library publications and online databases (NCLive, Dow Jones Interactive, InfoTrac)
    • Trade associations and industry magazines; connect through association websites
    • Better Business Bureau
    • Library of Congress’s Legislative Information
    • Your state’s General Assembly
  9. Include consumer market data:
    • Demographics – population/household size, median income, age, sex, race, ethnicity, family status, housing status, etc.
    • Psychographics – lifestyle information, tastes, preferences and buying habits
  10. Resources: (Available at your local library)
    • Lifestyle Market Analysis, SRDC – used for collecting psychographic data
    • Demographics USA Counts or Zip Code editions, VNU Publishing Internet Resources (Free or for Purchase)
    • Bureau of the Census
    • ESRI, formerly CACI Marketing Solutions, has free demographic data available by zip code
    • EASI will give estimated demographic statistics within a user-specified radii for any address.
    • For psychographic information and analysis of zip code areas, use Applied Geographic Solutions Mosaic
  11. Include competitor information:
    • Who are the major businesses in the industry?
    • Where are they located?
    • How long have they been in business?
    • What is their market share?
  12. Resources: (Available at your local library)
    • Encyclopedia of American Industries,Gale Research
    • Harris InfoSource Business Directory
  13. Internet Resources (Free or for Purchase)
    • Trade Associations
    • Securities Exchange Commission (For research on public companies)
    • Reference USA – subscription based service for libraries and government agencies.
      • Visit their parent site InfoUSA
    • D&B’s ZapData
    • Hoover’s Online – Companies and Industries Section
    • Thomas Register or Thomas Regional – free registration is first required
  14. Perform a search in a search engine using common industry jargon and/or search to see if the identified trade associations have websites.