An industry environment analysis is a method used to evaluate the various forces operational in an industry that may be externally or internally sourced. It weighs the immediate as well as the delayed effect of these forces and concentrates on the strategic ways of moderating the forces. Thus it should be technically developed by evaluating each aspect of the environment.
Sample Industry Environment Analysis
Industry Environment Analysis of Timber Manufacturing Industry
Analysis undertaken by: Tillman Free, Reporter of Daily Times
Analysis submitted on: 9th July, 2011
Analysis nature: Strategic
Analysis objective: Environment analysis is an important step in the making of good leadership as environment is composed by employees and employees are controlled by leaders. This analysis will account for the variables the work and business environment of the timber industry are dependent on.
Analysis period: 2009-2010
Variable 1: Rivalry
This feature contemplates the position of the competitors who are going abreast with the leading brands. As it has been found out, the timbre manufacturing sector is faced with a number of challenges because of the rising use of alternative materials like plastic and steel in furniture. This has led to a sense of risk among the owners resulting in an apprehensive environment.
Variable 2: Bargaining Power
The bargaining power of buyers has incredibly increased as fallout that has intensified the gravity of the situation leaving the manufacturers gullible to the prices proposed to them.
Variable 3: Resources
Machines have replaced human labor which has been another factor due to which insecurity among workers has increased thereby creating a downbeat environment.