Industry

and
Competitors
Analysis
Institute of Chartered Secretaries of Bangladesh (ICSB)
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Industry Analysis : Its Purposes
Industry analysis is business research that focuses on the
potential of an industry.
An industry is a group of firms producing a similar product or
service, such as music, fitness drinks, or electronic games.
Once it is determined that a new venture is feasible in regard
to the industry and the target market in which it will compete,
a more in-depth analysis is needed to learn the ins and outs of
the industry the firm plans to enter.

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Five competitive forces to determine industry profitability

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“barriers to entry” in creating disincentives for firms to enter an
industry.
A barrier to entry is a condition that creates a disincentive way for a
new firm to enter an industry. Let’s look at the six major sources of
barriers to entry:
1. Economies of Scale
2. Product Differentiation
3. Capital Requirement
4. Cost Advantages independent of size
5. Access to distribution channels
6. Government and Legal Barriers

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Non-traditional barriers to entry

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Four industry-related questions to ask before
pursuing the idea for a firm.

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Five primary industry types and the
opportunities they offer

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Purpose of a competitor analysis.
A competitor analysis is a detailed analysis of a firm’s competition. It
helps a firm understand the positions of its major competitors and the
opportunities that are available to obtain a competitive advantage in
one or more areas.
These are important issues, particularly for new ventures.17 In the
words of Sun-tzu, quoted earlier in this chapter, “Time spent in
reconnaissance is seldom wasted.”

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Three groups of competitors a new firm will face.

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Common Tools for industry Ananlysis
1. Competitive Forces Model (Porter’s 5 Forces)
2. Broad Factors Analysis (PEST Analysis)
3. SWOT Analysis

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Competitive Forces Model (Porter’s 5 Forces)

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Broad Factors Analysis
(PEST Analysis)

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SWOT Analysis

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Let’s Brush up Ourselves

14
A group of firms that produce a similar type of goods or services is
called ________
A) Similar Production system
B) Common Firms
C) Group of Companies
D) Industry

D. Industry

15
According to the textbook and ideal practice of entrepreneurship
development, which is the proper sequence of events in developing
successful business ideas?
A) opportunity recognition, feasibility analysis, development of a business plan
B) feasibility analysis, opportunity recognition, development of a business plan
C) development of a business plan, opportunity recognition, feasibility analysis
D) feasibility analysis, development of a business plan, opportunity recognition

A. 0pportunity recognition, feasibility analysis,

development of a business plan

16
 Industry
Thanks for and
Patience Competitors
Analysis

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