Financial analytics is becoming an increasingly significant factor in various industries such as the banking sector, insurance or investment management, and the healthcare industry. Numerous companies and organizations use…continue reading
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What Is an Industry Analysis?
An industry analysis is a comprehensive study on a particular industry or sector. It is a structured analysis that seeks to establish a thorough understanding of an industry and all its different aspects.
According to a recent article by Yahoo!, the airline industry was among the hardest hit industries during the COVID-19 pandemic. Boeing reported a total net loss of $11.9 billion in 2020. Other sectors and industries that were negatively affected were restaurants, casinos, and cinemas among others.
Examples of Industries
Within the global economy, there are numerous industries that one can enter into. Looking for the right industry that matches your skills, however, is another thing altogether. The following examples below are just some major industries that continue to employ millions of workers around the world.
Tips for Crafting an Industry Analysis
If you are tasked to draft an industry analysis, you need to have a clear goal in mind. You do not just conduct an analysis without understanding the purpose behind it. The following examples are some useful tips to keep in mind when writing a formal industry analysis.
How to Create an Industry Analysis
To create an industry analysis, you need to do adequate and credible research. And if you are looking for reliable and editable templates, you can easily download any suitable template from the selection above. Simply choose a sample industry analysis template and follow the basic steps below.
Step 1: Executive Summary
The first section in a formal industry analysis is the executive summary. You have to treat your study like a formal paper or presentation. An executive summary or abstract of your analysis would help the reader significantly. If you can present your study in a condensed and straightforward way, it can help manage the reader’s expectations. A good executive summary should only include the main points and ideas. Keep it brief and straightforward. Note that you do not necessarily have to come up with this section first. Once you have gathered all your data and have done a sufficient analysis, then you can summarize it accordingly.
Step 2: Background Review of the Industry
This section is important because it will provide the context of your analysis. Before you start dissecting and analyzing, you have to describe the current state of the industry. Alternatively, you can also offer a bit of history on your chosen industry or sector. Your approach to writing a background study may vary; but what’s important is that you are able to give a clear backdrop or foundation for your analysis. It helps to keep your audience in mind. The reader should be able to transition smoothly into your industry analysis thanks to the background review you provided.
Step 3: Data Analysis
Once you have given a solid background, you can then proceed to the actual analysis. At this point, you should have already gathered and sifted through your data. As discussed in previous sections, your approach to analyzing can vary and depend on your needs and preferences. If you choose to use the SWOT method, you can create a matrix or table to better present and organize your information. Moreover, you can discuss the various factors that influence or affect your industry. Just be sure that your arguments and analysis are backed up by supporting evidence and credible sources.
Step 4: Findings and Recommendations
The last step in creating an industry analysis is making sense of your data analysis. The work should not just stop with an analysis. To culminate your study, there must be a call to action. This section is where you can discuss the next steps or what needs to be done moving forward. Keep your recommendations concrete, descriptive and realistic. You want to offer sound and practical suggestions, taking into account the findings you’ve gathered and researched.
What is an industry analysis?
An industry analysis is a comprehensive analysis or study that is meant to help professionals understand the ins and outs of a particular industry. It can be used as a tool in decision-making and strategic planning.
What are the 3 types of industry analysis?
According to the Corporate Finance Institute, the three common methods of industry analysis are Porter’s Five Forces, PEST analysis and SWOT analysis.
What do you write in an industry analysis?
A basic industry analysis can consist of various sections. It is important to establish a framework or approach first before proceeding to the actual analysis. Refer to the previous section for more detailed instructions on how to write an industry analysis.
An industry analysis can help your organization better understand the forces and factors that directly and indirectly affect it. Browse the broad selection of editable templates above, choose one that suits your needs and create your own industry analysis now!