A sample industry analysis zeroes in on the deeper aspects of an industry. It is the most important means of comprehending and calculating the goals, strategies, ethics, vision and orientation of an industry. The conclusion has to be formed with thought as that would decide the next recourse of the management.
Sample Industry Analysis
Industry to be analysed: Diamond making Industry
Analysis conducted by: Madison Halls, writer of Astrology Magazine.
Analysis submitted on: 5th October, 2011.
The elements of the industry analysis:
- Threats posed by substitutes: The moissanite and cubic zirconium industry has got a boost with 10 companies opening stores in the last decade. The challenge of the diamond industry lies in the fact that these alternative industries have done substantially well by providing original diamond look-alike substitutes.
- Intensity of competition: The new industries have broken the monopolization of the diamond industry thus putting a pressure on it to make extra efforts in reaching out to the masses.
- Availability of resources: The companies supplying raw materials are in a better position to negotiate with the industry as the demand of their raw materials has increased. The supply of other factors of production has declined with more diamond making factories trying to absorb the magnitude of it.
- Customer bargains: With more dispersed channels of delivery of the moissanite jewellery from other industries, customers are looking for cheaper and more durable alternatives.
- Nature of analysis: The analysis is done quantitatively to gather statistical data representing the status of the industry in the local and international market.