Glossary Background

Industry Analysis

Industry analysis is a technique for evaluating an industry’s competitive landscape, potential profitability, supply-demand dynamics, and other key factors. It examines elements like market rivalry, growth opportunities, and economic trends to assess the sector’s overall health and viability. By analyzing these aspects, investors and businesses can gauge the risks and rewards of operating or investing within that industry. This method provides critical insights into how external forces and internal structures influence performance, aiding strategic decision-making for companies and stakeholders aiming to navigate the industry effectively.