hi and welcome everybody to another of
the management 175 instructional videos
today we're going to be looking
introduction to industry analysis
industry analysis is a very important
skill to develop as a management student
you need to develop the ability to
effectively and efficiently look at
industries look at markets to break down
the important factors that are
influencing them
this can help you target new potential
consumers this is a way to compete with
other competitor companies so for
starters industries and markets are
intertwined here are three examples the
hotel restaurants and tourism industries
in the hotel industry while it
encompasses a variety of things you can
see that there are smaller niche markets
built into it the luxury hotel market in
a specific City New York you could look
at a specific demographic group like
Hispanic travelers or Asian Americans or
soccer moms the restaurant industry has
you know specific dining trends health
food gluten-free you know these are all
trends that are influencing the
restaurant industry as well as types of
restaurants fast casual ethnic
restaurants fusion within the tourism
industry you know business travel versus
wedding and honeymoon tourism versus
looking at a demographic group like baby
boomers and their travel trends the
major components of an industry analysis
are in this list right here looking at
an overview news and innovations what
things are impacting and forcing the
companies and the major players to serve
scramble to try and compete more
effectively consumer level and market
data what are the trends that consumers
are dealing with in where they spend
their money whether it's soda pop
whether it's tourism in hotels
whether it's iPhones
and smartphones who are the major
competitors how are they interacting
with each other how much of the market
do they control as well as the economic
conditions if the economy is tanking how
does that influence any given industry
or market as well as government
regulations something like the
pharmaceutical industry has to deal with
the Federal Drug Administration and all
of their protocols and requirements for
getting a drug past so you've got to pay
attention to what are the rules and
regulations that any industry has to
deal with there are a variety of types
of Industry Analysis we have books in
the the parish library that contain
details on dozens of different types of
analysis so you have things like
Porter's five forces that looks at the
power of the customer the power of the
suppliers how much threat is there if
somebody new coming in and shaking
things up as well as just the
potentially the threat of substitute
products maybe you're just going to go
spend your money someplace else a
specific example of that would be a
friend of mine worked for a company
called harden furniture and their
competition was not Kimball's or the
do-it-yourself furniture that you get
from Target or Walmart their competition
was Tiffany's their competition was BMW
because you could go out and buy one of
their love seats or you could go out and
buy a diamond tennis bracelet that's the
price level that they were at and that's
sort of the potential substitute so
you've got to be careful when you think
about an industry and what the
competition may or may not be
you can also look at things from other
analysis perspectives the value chain
which breaks down the functions of a
company to see how it is working within
the industry as well as something like
Porter's four corners that looks at
drivers their current strategy the
management's assumptions and how capable
they are so it's these types of analysis
that look at the primary elements of
understanding how an industry operates
and what is influencing internally and
externally so to wrap this up analyzing
an industry gives you a deeper
understanding of the industry the the
smaller markets underneath it who the
major players are and those internal and
external influences as always if you've
got any questions either email us or
talk to us in class thanks very much