Industrty Analysis

INDUSTRY ANALYSIS AND MARKET
ANALYSIS
S Nhokovedzo
Technopreneurship Development Centre
Learning Objectives
Participants are expected to:
• Understand the importance macro , task and
micro environmental analysis in writing a
business plan
• Use the industry analysis tools in writing a
business plan
• Formulate strategies to capitalise on
opportunities presented by the environment
whilst mitigating on the threats
Introduction
•Industryanalysis is an in-depth
examination of the industry
dynamics
•Important to assess the impact of
macro environmental factors,
degree of competition ,supply &
demand statistics and the future
trends
Tools for Industry and market analysis
•PESTPI analysis
•The Porter’s 5 forces plus
•TOWS/SWOT analysis
•Market feasibility studies / Market
Research
PESTPI Analysis
• Political
• Economic,
• Social-demographic
• Technological
• Physical
• International/global environment
Political factors
• Political factors that affect an industry include
specific policies and regulations related to
things like taxes, environmental regulation,
tariffs, trade policies, labour laws, ease of
doing business, and overall political stability
• Analysethe Political factors are affecting your
industry??
• Include
the counter strategies to lessen the
adverse impacts
• Include the strategies to capitalise on
Economic factors
• Theeconomic forces that have an impact o
business include inflation, exchange rates,
interest rates, GDP growth rates, conditions in
the capital markets (ability to access capital),
etc.
• Show how you will overcome the negative
impacts of the economic environment such as
inflation and adverse exchange shifts
Social and Demographic
• Thesocial impact on an industry refers to trends

among people and includes things such as
population growth, demographics (age, gender,
etc.), and trends in behavior such as health,
fashion, and social movements
• Howis your business going to respond to
opportunities presented by the socio-demographic
factors
Technological factors
• The technological aspect incorporates factors such as
advancements and developments that change the way
a business operates and the ways in which people live
their lives (e.g., social media’s impact on business).
• Givea brief examination of the technological
environment.
• What kind of systems and operating methods are
available in the industry?
Physical /Ecological/ Natural factors
• Relatesto the availability of natural

endowments such as water, air,
minerals, vegetation, animals, micro-
organisms, climate and edaphic
factors. These affect the cost of doing
business and access to raw materials.
International/Global factors
• Ina global village, one ignores global trends at

their own peril. A company must monitor global
trends like demand patterns in other countries,
substitutes and global competition. There is need
for continuous benchmarking with global
standards
• Consider
the source of your substitutes and
competing brands at global scale
• Map you globalisation strategy
BUSINESS ENVIRONMENT
Macro Environment Internal Environment

Political-legal Vision
Economic Mission
Social-cultural Organisational structure
Technological Organisational culture
Physical/natural Objectives
International Strategies
Budgets
Micro/Task
Marketing mix decisions
Environment
- Products
Customers
- Price
Competitors
- Promotion
Suppliers
- Place
Distributors
- Physical evidence
Government
- Processes
Labour
- People
Media
General Public
Other publics
06/01/2024 N Muzondo 12
Sub factors of macro environment of
financial services organisations
Political Social-cultural factors
•  Population size, age, sex
Laws and regulations
distribution and growth
• Political stability/instability patterns
• Political party in power  Education and learning
• Democracy or democrazy!  Ethnicity
•  Social class, perception,

Taxation
attitudes, personality
 Language, culture, religion,
Economic factors etc
• Inflation
• Interest rates Technological factors
 Country’s ability to adapt to
• Availability and price of foreign currency
technological changes
• Income distribution and spending  National investment in R&D
patterns
 National competitiveness
• Gross domestic product, etc
06/01/2024 N Muzondo 13
Mckinsey’s 7 S Framework
SWOT/TOWS Analysis
• TOWS Analysis stands for Threats,
Opportunities, Weaknesses and
Strengths.
• This is a great way to summarise various
industry forces and determining their
implications for the business in question.
Why SWOT analysis
• Craft
defensive and adaptive strategies to
thwart the threats
• Strategically plan to exploit opportunities
• Fortify and defend the strengths
• Either
invest to minimise weakness or lay a
defensive wall to protect a weak flank
Competitive Industry Analysis
• Is
determination of the degree of
competition within an industry. It looks at
o Rivalry among the competing firms
o Threat of New Entrants and Exit
o Threat of Substitutes
o Bargaining Power of Buyers
o Bargaining Power of Suppliers
o Power of Complementary products
Why analysing the Competitive
forces
Why is the Task environmental analysis important in a Start- up
Business Plan?
• It gives a glimpse of what to expect in the industry
• It guides entry strategy
• It guide Partner-relationship strategy
• Identify sources of durable competitive advantage
• Sharpenthe attacking strategies and fortify the
defensive strategies
QUESTIONS
??
Thank You

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INDUSTRY ANALYSIS AND MARKET

• Thesocial impact on an industry refers to trends

• Relatesto the availability of natural

• Ina global village, one ignores global trends at

Macro Environment Internal Environment

•  Social class, perception,

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