Explain the following briefly. Write your answers in your activity notebook.
1. Do you think it is important to conduct industry analysis prior to the
establishment of a business? Why or why not?
2. In what way the survey help you identify the business opportunities in
your locality?
Answers
Answer:
Industry analysis is a tool that many businesses use to assess the market. It is used by market analysts, as well as by business owners, to figure out how the industry dynamics work for the specific industry studied. Industry analysis helps the analyst develop strong sense of what is going on in the industry. Think of it as a fancy way of “getting the lay of the land."
When it comes to business, industry analysis involves such things as assessing the competition in the industry; the interplay of supply and demand in the industry; how the industry holds up against other industries that are emerging and providing competitions; the likely future of the industry, especially in light of technological developments; how credit works in the industry; and the exact extent of the impact that external factors have on the industry.