How can you analyze an industry like a pro?

3 Analyze the industry dynamics

The third step is to analyze the industry dynamics, which refers to the changes and trends that affect the industry over time. You can use tools, such as SWOT analysis, industry life cycle, or scenario planning, to identify the strengths, weaknesses, opportunities, and threats of the industry, as well as the stages of growth, decline, or maturity, and the possible future scenarios.

4 Compare the industry performance

The fourth step is to compare the industry performance, which refers to the financial and operational results of the industry and its competitors. You can use metrics, such as revenue, profit, market share, growth rate, or return on investment, to measure and benchmark the industry performance. You can also use ratios, such as profit margin, asset turnover, or debt-to-equity, to evaluate the industry efficiency, productivity, or leverage.

5 Identify the industry drivers

The fifth step is to identify the industry drivers, which refers to the key factors that influence the industry performance and potential. You can use models, such as value chain analysis, resource-based view, or core competencies, to determine the sources of value creation, competitive advantage, or differentiation in the industry. You can also use concepts, such as innovation, disruption, or sustainability, to explore the potential for change or improvement in the industry.

6 Synthesize the industry analysis

The final step is to synthesize the industry analysis, which refers to the integration and interpretation of the findings from the previous steps. You can use techniques, such as SWOT matrix, Porter's generic strategies, or Ansoff matrix, to formulate strategic recommendations, actions, or goals for the industry or your business. You can also use tools, such as charts, graphs, or dashboards, to visualize and communicate your industry analysis.