When written as a section of a company’s business plan, an industry analysis can be presented as a five-step process.
Step 1:Give a brief overview of the industryDefine the industry in terms of historica background,the geographic area it services, and its products.
·Step 2:Review trends and growth patterns that have existed within the industry.
·Step 3:Identify factors that influence the industryThese might include government regulatory policies and competitive practices of other businesses.
·Step 4: Using data gathered through research,the industry forecast anticipated growth. The predictions should be both long-and short-term.
·Step 5: Describe how your company will position itself within the industry focus on how your company can take advantage of opportunities identified within the industry.
A situational analysis you can get connect to write the industry analysis:
Situational analysis: With a decrease in car sales due to Covid-19, car manufacturers pulled back on their orders for semiconductors. People were no longer leaving the house, so there was no need to travel. People rarely used their own cars, let alone wanting to buy a new one. Because of this, car manufacturers had to largely scale back on their production. This in turn caused chip manufacturers to shift their focus elsewhere to meet other industry demands. Because people were largely staying home, demand for consumer electronics shot up, as people wanted to buy things that could entertain them in their home, such as a TV, computer, tablet, etc.
Further into the pandemic, people started to feel comfortable going out and about. People were traveling again, and thus car sales rose back up. WIth an increased demand in cars, car manufacturers turned back to chip manufacturers, expecting the chips they needed to be there. Unfortunately, the semiconductor supply chain was not ready for this shift and were unable to meet the demand of the car manufacturers. Before the pandemic, it was somewhat overlooked exactly where chips were being made and how long it took to make them. They were this cheap thing that was always a constant in chip manufacturing. No one ever expected them to cause such a stir. Now more than ever, there is scrutiny on the supply chain for semiconductors as people want them made faster and more efficiently.