Industry Analysis: How to redefine your business strategy

May 2016

There are a lot of companies who are faced with the increasingly faster changes in the market making them feel insecure. How should they react? Are they to adapt their business strategy completely to the current market situation without considering the individual capabilities of their company? Or would it be better to take into account the new laws of the market only insofar as it seems necessary for a solid business strategy and ultimately the protection of the company's profit zone? The answers to all these questions are best given by an experienced market research company like Market Researchers within the framework of industry analysis.

Industry analysis is often conducted as a part of market analysis. At Market Researchers, however, it is also frequently commissioned independently in order to analyze specifically the current as well as the future development of a particular industry. Industry analysis deals mainly with the effects of economic, political as well as other factors on a given industry. When analyzing these factors it is usually the Porter's five forces framework which is used, which allows the investigation of the essential components and subsequently the concise presentation of the results.

What is the Porter's five forces framework comprised of? The five eponymous components are the bargaining power of suppliers, bargaining power of customers, the threat of new entrants to the market, the threat of substitute products as well as the competition within the industry. It is through a precise analysis of the bargaining power on the part of the suppliers as well as of the customers that industry analysis can enable the particular company to redefine its market position thus allowing it to develop a business strategy which takes account of the new conditions. The threat posed by other competitors trying to enter the market and possible substitute products is a serious factor which has to be considered when redefining the business strategy. The same also holds true in general of course for the competition within the industry in question.

The research team of Market Researchers has conducted numerous industry analyses for clients from many different industries. The main purpose was always to provide a structured basis enabling the company to define a new and sustainable business strategy. Market Researchers has years of experience which qualifies them to support their clients with detailed industry and market analyses. The gathering and the analysis of the required data is conducted within the framework of professional data analyses. Moreover, Market Researchers not only takes into account the basis industry analysis lays down for a particular industry but also company-specific preconditions and options thus making the development for a customized business strategy for your company possible in the first place.