Industry analysis is best done choosing a company and carrying out an analysis of the industry within which the company competes. For example, Southwest Airlines, the context would be the airline industry. The key issues to be explored would include:
1. Executive Summary
2. Company History
2.2. Purpose of Study
3. External Analysis
3.1. General Environment Analysis
3.1.1. Demographic Segment
3.1.2. Economic Segment
3.1.3. Political/Legal Segment
3.1.4. Socio-Cultural Segment
3.1.5. Technological Segment
3.1.6. Global Segment 15
3.1.7. Summary of General Environment Analysis
3.1.8. Driving Forces
3.2. Industry Analysis
3.2.1. Description of the Industry
3.2.2. Industry Dominant Economic Features
3.2.3. Market Size
3.2.4. Market Growth Rate
3.2.5. Industry Trends
3.2.6. Five Forces Analysis
184.108.40.206. Threat of New Entrants
220.127.116.11. Power of Suppliers
18.104.22.168. Power of Buyers
22.214.171.124. Power of Substitutes
126.96.36.199. Intensity of Rivalry
3.2.7. Summary of Industry Analysis
3.3. Competition Analysis
3.3.1. Industry Competitors
3.3.2. Rivals Anticipated Strategic Moves
3.3.3. Summary of Competitive Analysis
3.3.4. Key Success Factors
Executive summary on page 2 should be so well written that the reader knows what the paper is about, what is covered, key discussion themes, and findings without actually reading the whole paper. The executive summary takes the place of an abstract.
Company History -historical background of McDonald’s -how it all started.
Background of the Company -What has happened in the last five years?
External Analysis -articulate your understanding of what external analysis is, why it is necessary, and the core elements and the 7 questions that must be addressed (see chapter 3 of any strategic management text of your choice)
The General environment is really the outer-layer of the macro-environment -discuss the political, economic, socio-cultural, technonological, environmental, and legal factors that impact the industry. You must discuss each in depth with statistical figures (see data-monitor or globaldata -two very useful sourrces for information) Remember, it is the general environment of the fast food industry, which is Macdonald’s immediate industry and competitive environment.
This is followed by a Summary of the general environment is to evaluate the collective impact 5 trends of the general environment (see figure 3.1)
The first question in any industry analysis is: what are industry’s dominant economic characteristics
Q2. Is two fold: 1. insert the five forces diagram and then discuss the five competitive forces that impact all players in the fast food industry. 2. Discuss the individual impact of each force, and then the collective impact of all the five forces on the profitability and attractiveness of the industry
Q3. Identify 3 or 4 driving forces (design a diagram for this) driving forces of change in the industry, discuss the impact of these forces on competition and profitability of the industry, and then discuss the response competitors must have in place to deal with the impact
Q4 -Requires you to use and also insert the strategic group map to discuss how rivals are positioned in the industry. Use industry variables ( price/quality) and degree of service provided.
Answer to Question 5 is to discuss what strategic moves rivals in the industry are likely to make
Q6 – You should analyze six key factors success in the industry
Q7. What is the industry outlook based on your analysis of questions 1-6?
The key is to research and read thoroughly chapter three of any strategic management text of your choice and do all the essential things the text suggests should be done as it applies to each of the seven external industry analysis questions.
This is followed by a broad conclusion and reference page
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