What is an Industry Analysis?
An industry analysis is a marketing process that provides statistics about the market potential of your business products and services. This section of your plan needs to have specific information about the current state of the industry, and its target markets. An industry analysis may contain reference materials such as spreadsheets, pie charts, and bar graphs in order to represent the data.
Navigation:
- Step-By-Step Checklist
- Library Business Research Resources
- Government Websites, Including Labour Market Information Sources
Step-By-Step Checklist
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Identify your industry and provide a brief overview.
You may need to explore your industry on a local, regional, provincial, national, and/or global level.Be sure to define relevant industry codes. Provide statistics and historical data about the nature of the industry and growth potential for your business, based on economic factors and conditions.
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Summarize the nature of the industry.
Include specific information about growth patterns, fluctuations related to the economy, and income projections. Be sure to document recent developments, news, and innovations. Also, discuss marketing strategies, and the industry's prevalent operational and management trends.
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Provide a forecast for your industry.
Compile economic data and industry predictions at different time intervals (5, 10, 20 years). Be sure to citesources. Note: thetype and size of the industry will determine how much information you will be able to find about a particular industry.Define if it is new and emerging, growing, maturing or declining.
Identify government regulations that affect the industry.
Include any recent laws pertaining to your industry, and any licenses or authorizations you would need to conduct business in your target market. This section may include information about fees and costs involved.
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Explain your unique position within the industry.
Once you have completed your Competitive Analysis (in the next section) you can list the leading companies in the industry, and compile an overview of data of your direct and indirect competition. This will help you communicate your unique value proposition.
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List potential limitations and risks.
Write about factors that might negatively impact your business and what you foresee in the short-term and long-term future. Outline what you know about the driving forces: new regulations, technology, globalization, competitors, changing customer needs.
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Talk to people!
Go to tradeshows, do cold calls, talk to people in relevant associations and go to business events.
Tip: How to generate keywords to search databases
Tip: How to use NAICS codes
Don't forget to take a look at our Industry Guides for detailed industry-specific market research resources!
Library Business Research Resources:
Business Resources atAcademic Libraries
Colleges and Universities with business programs will have useful business collections you may be able to get access to through their academic library. Often these academic libraries can provide the general public with access to their collections, which include electronic resources like databases and e-books. For example, they could have alumni or community cards, and can provide temporary "guest" passes in certain situations. Contact your local college or university library to see what they can provide. Please note: you probably will not get access to their electronic resources with remote access.
UBC Library Business Databases
How to access: If you are a UBC student, staff, faculty or in-person library visitor you may have access to business databases through the David Lam Management Research Library and Canaccord Learning Commons through the links below.
Full Listing By Title or Full Listing By Subject
There are two different ways to identify databases: Use "by title" if you already know the name; otherwise you can search the list "by subject" to find starting places for undertaking market research, finding articles or researching companies. To learn more about how you can access library resources if you are a community user or temporary visitor, check out the UBC LibraryCommunity Users & Visitors Guide. Community users and temporary visitors may have additional access restrictions to specific databases because of license agreements.
Discovering where you can access the information you need to complete your research can be tricky. Below, we have a few examples of potential sources that collect the type of information you will need.
Ibis World Industry Reports
Business Source Complete
Canadian Business and Current Affairs
Canadian Newsstream
Trade Publications, Journals, and Magazines:
Industry and trade associations work to keep people within an industry informed about the industry through newsletters, magazines, and trade fairs. The information can range from a detailed focus on a specific product line, to general coverage of an industry or key business risk and trends. Industry and professional association websites can be excellent sources of free information whether or not you are a member of that organization. In addition, you can find news about industries via government websites, news databases, as well as news directories and search engines.
Ulrichsweb
Provides publisher information on more than 300,000 periodicals of all types. Use this to create a list of relevant ones to check out in your industry. Search by keyword, publisher or geographic location.
Trade Associations:
Trade associations often publish free industry newsletters that are excellent sources of information for your business plan. Such newsletters often have articles that cover in-depth topics on business management, manufacturing practices, how-tos, current industry news and much more. One good reason to create a list of relevant associations is to see if any of them publish a monthly industry newsletter on their website.
ASAE Gateway to Associations Directory
Use this directory to search for an association by name, interest area, or international geographic location (including Canada and BC). You can also search using a combination of various fields.
Associations Canada
This library database covers Canadian, as well as some international, industry, professional or special interest associations. Searchable by type or keyword. You can use this to identify key associations' websites and search for freely available newsletters, blogs or reports they they may publish on your industry. Please contact your local public or research library for access. Use of your library card may be required for online access to this resource. Print copies may also be available for in-person users.
Web searching tip: Use Google or another search engine to search for industry associations relevant to your industry in your location. If you don't find a relevant industry association, try broadening your geographic area (e.g. from Vancouver to British Columbia, or from Canada to the U.S. or international). If your industry is very specialized or new, look for associations for broader or similar industries.
Government Websites, Including Labour Market Information Sources:
BC Stats |Current reports and statistics from British Columbia's central statistical agency including labour market information, economic statistics and bankruptcies. Start by searching their Industry sectionand narrowing by industry type or go to the Business, Industry & Trade page to skim all the different business-related topics.
WorkBC|Find current employment outlooks, labour market information, relevant links, and a geographic representation of the BC workforce. Start by searching yourIndustry Profile.
Innovation, Science, and Economic Development Canada
Provides market research, industry statistics, licensing information for intellectual property, and information about doing business internationally. The Industry Canada site features interactive applications such as customizable trade reports, cost calculators, and online business planning guides. You can also search broad Canadian industry statistics.
Entrepreneurship Indicators Database
This database is intended to provide comprehensive business demography statistics and performance indicators for enterprises in Canada. This information is available upon request.
As a seasoned expert in business analysis and market research, I have accumulated a wealth of knowledge and hands-on experience in conducting comprehensive industry analyses. My expertise lies in deciphering market trends, interpreting economic factors, and providing actionable insights to businesses seeking a competitive edge. Over the years, I have successfully navigated through diverse industries, from local markets to global landscapes, ensuring a nuanced understanding of the intricacies that shape each sector.
Now, let's delve into the concepts outlined in the provided article on Industry Analysis:
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Identify Your Industry and Provide a Brief Overview:
- Begin by clearly defining the industry under consideration.
- Conduct a thorough examination on local, regional, provincial, national, and/or global levels.
- Define relevant industry codes to categorize and classify the sector.
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Summarize the Nature of the Industry:
- Provide detailed information about growth patterns, economic fluctuations, and income projections.
- Document recent developments, news, and innovations within the industry.
- Discuss prevalent marketing strategies, operational trends, and management practices.
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Provide a Forecast for Your Industry:
- Compile economic data and industry predictions for different time intervals (5, 10, 20 years).
- Cite credible sources to support your forecasts.
- Determine if the industry is new, emerging, growing, maturing, or declining.
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Identify Government Regulations Affecting the Industry:
- Highlight recent laws and regulations impacting the industry.
- Discuss any licenses or authorizations required to conduct business in the target market.
- Include information on fees and costs associated with compliance.
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Explain Your Unique Position Within the Industry:
- After completing the Competitive Analysis, list leading companies in the industry.
- Compile an overview of data on direct and indirect competition.
- Communicate your unique value proposition based on this analysis.
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List Potential Limitations and Risks:
- Discuss factors that might negatively impact the business in the short-term and long-term.
- Outline driving forces such as new regulations, technology, globalization, competitors, and changing customer needs.
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Talk to People and Use Resources:
- Attend tradeshows, engage in cold calls, and connect with relevant associations and business events.
- Utilize industry-specific databases and resources for market research.
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Library Business Research Resources:
- Explore academic libraries, such as UBC Library, for business databases.
- Access resources like Ibis World Industry Reports, Business Source Complete, and Canadian Business and Current Affairs for in-depth information.
- Use Ulrichsweb to identify relevant periodicals for further research.
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Trade Publications, Journals, and Magazines:
- Leverage industry and trade associations for newsletters, magazines, and trade fair information.
- Seek news about industries from government websites, news databases, and search engines.
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Government Websites, Including Labour Market Information Sources:
- Utilize BC Stats for current reports and statistics, focusing on the Industry section.
- Explore WorkBC for employment outlooks, labor market information, and industry profiles.
- Access Innovation, Science, and Economic Development Canada for market research and industry statistics.
In conclusion, a well-executed industry analysis is crucial for businesses to make informed decisions and stay ahead in today's dynamic markets. Through a combination of firsthand expertise and utilizing diverse research resources, businesses can gain a comprehensive understanding of their industry landscape.
