Industry Analysis and Company Analysis
Industry and company analysis of an organization operating in a particular sector is very significant aspect in strategic management as it provides an opportunity to explore and critically evaluate the existent business environment. It also involves understanding as well as reviewing market, political and economic factors with regard to company and industry evaluation of a company.
Significance of Industry and Company Analysis
For a start-up business, it is extremely essential to understand and study the concerned domain or sector where the entrepreneurs are thinking to invest and grow their venture. Owners, investors and other prospective related stakeholders of the business venture will get the opportunity to assess the relative strengths and weaknesses and thus formulate accurate strategies to enter into that particular sector subsequently. A detailed industry evaluation will assist the managers to identify significant factors that will be required to drive the growth of the business.
A student who aspires to pursue a career as an equity research analyst can be benefitted by conducting a detailed evaluation of industry and company analysis of the respective domain. In case of analysis of this type, it is significant to analyse the obtained data, historical trends, history of supply and demand in the particular sector, and future prospect of the functioning in the said sector. Our experts are specialised in preparing an ideal report comprising factors such as understanding a firm’s surrounding business environment, identify relative opportunities to invest, and performance attribution of respective portfolios. With the evaluation of specific industry for operation of the start-up, it is essential to identify same companies operating in that sector as they might form the prospective competitors.
Our experts also successfully highlights the importance of the company and industry analysis by studying and critically evaluating annual reports of the concerned company, reviewing competitor’s annual report, looking over trade publications of the industries in the concerned factory and comparing business activities. There exists various objectives to formulate and establish a report on company as well as industry analysis as it would enable the shareholders to understand the viability of operating in that particular industry. However, limitations of operating in that particular sector and industry are also highlighted in the report by our experts to critically analyse the viability of investing in such as sector from the perspective of shareholders, and investors. There exists various influences and impacts that can be considered while formulation and presentation of the project reports on industry and company analysis.
The components or the influences forming the framework for industry analysis are:
- Macroeconomic Influences- These influences is inclusive of detailed evaluation of future growth prospects, economic trends, internal forces of competition, threats from new entrants, products or services substitution threats, bargaining power of consumers and buyers etc.
- Demographic Influences- These factors also impact decisions of critical evaluation of bargaining forces inclusive of various firms operating in the industry, customer’s capability to make an entry in the concerned sector, switching expenses of the suppliers etc.
- Governmental Influences- The factors impacting the formulation of industry analysis are inclusive of political, legal and regulatory matters.
By considering the above industry analysis, our experts adopt various techniques such as Porter’s Five Forces, PESTLE Analysis, SWOT Analysis, VRIO, Porter’s Generic Strategy, and Value-Chain, Ansoff-Matrix Model.
- Porter’s Five Forces Model- Our experts take the assistance of this model to evaluate the competitive positioning of a firm by considering the bargaining power of buyers and suppliers, threats from substitutes and new entrants.
- SWOT Analysis- This matrix is used to generate and evaluate the relative strengths, weaknesses, opportunities and threats of a particular industry or firm operating in the same.
- VRIO Strategy- This technique is unique in its approach as our expert utilise this to evaluate resources and classify them as valuable, costly, imitable, or rare.
- Porter’s Generic Strategy- This technique that classifies a company in accordance to the strategies adopted, namely, cost leadership strategy and differentiation strategy.
- PESTLE Strategy- This technique consist of macro-economic factors to assess the external environment of the operating company on the basis of politics, social, economic, environmental, technological, and legal components.
Our experts conduct company analysis and subsequently present the report in consideration of the following aspects:
- Assessment of the profile of the organization.
- Explanation of significant features.
- Analysis of demand and supply.
- Assessment of input and supply expenses.
- Explanation and assessment of pricing environment.
- Presentation and interpretation of significant financial ratios and performance analysis.
With the conduction of company analysis, our experts take into consideration by comparing all relevant data and interpretation of the competitors as well. Our experts have successfully conducted in-depth, analytical and accurate results and reports.