Term Paper on Industry Analysis

Industry Analysis Term Paper:

Industry analysis is a process that is characterized with the attempt of entrepreneurs to study and evaluate the current business environment. It is obvious, that every businessperson who wants to start his business should conduct industry analysis attentively.

The main idea of industry analysis is to understand whether the current situation on the market and political situation in the country are safe for business. This issue is very important for small business that is very vulnerable to any changes of this kind. Industry analysis is an integral part of a business plan and when an entrepreneur wants to start his small business, he studies the market, its components, political freedom and social issues that influence success of every business. This analysis starts with the profound research of competitors. One should know his rivals well in order to be able to co-exist with them.

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If there are several small competitors, this situation is favorable for business, because all these rivals have equal chances for success. When there is a big corporation on the market, it will be very hard to compete with its huge ambitions. Next, one should study if there are substitute goods on the market. If one’s production is original, he receives competitive advantage over his rivals. Next, one should learn if there is political support towards small business. When a state provides entrepreneurs with the support of this kind, its business environment is considered to be favorable. It is natural, that the situation on the market is changing constantly, so every big company conducts industry analysis several times per year. Small business conducts this analysis seasonably in order to keep its financial situation under control.

Industry analysis is a good topic for analysis, because a student learns about the relevance of this document for the creation of a business plan. When you need to prepare a term paper about industry analysis, you should pay attention to its components, its urgency and its importance for small and middle business. You should write about such issues as competition on the market, political situation in the country, the problem of supply and demand, etc. Moreover, you are able to provide your teacher with a few examples of industry analysis conducted by small and big business.

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