Try to find out what is expected to happen within the industry in the future. Are the sales, profits and competitors expected to increase, decrease or stabilize? Show figures. What new product or new production methods are expected? Will the industry become more or less competitive with other industries?
- Do your products and/or services have any competitive advantage because of patents, copyrights, trademarks, franchise or dealership rights and the like? If so, explain the advantages and state how long this proprietary position is likely to last.
- State any other factors that give you a competitive advantage.
- Determine the important characteristics of the industry and list those that are relevant to your business.
List those characteristics which could have an impact upon your business, beneficially or adversely. Some characteristics that you might wish to consider are:-
- Capital requirements
- Distribution channels
- Technology to use- modern, outdated sophiscated or simple Whether it is capital or labour intensive
- Competition from imports
- Market segmentation and size of competitors
- Describe the seasonal factors that are experienced in the industry.
Industrial trends and prospect
- Describe the trends and prospect of sales in the industries – indicate sign of growth, stability or decline.
- Describe the trends and prospects of technological development in the industry
- Competitive trend in the industry and what future holds for the industry e.g product innovations