The study of a group of companies involved in similar business activities. Companies belong to at least one and possibly several industries.
Types of Industries:
Aerospace Apparel Chemicals
Computer Software Entertainment Health Care
Specialty Retailers Soaps, Cosmetics Wholesalers
Example: Coca-Cola is involved in the manufacturing of syrup, the sales and distribution of carbonated beverages, and the bottling of beverages. Each of these are separate industries.
Industry information can consist of the following:
Market Share – How much of a given industry does a company control.
Company X controls 75% of the widget market.
Industry Rankings – A ranked list of companies in an industry within some parameter.
Company X is first in sales in the widget industry.
Industry Ratios – averages of financial statistics are calculated for a group of companies in a given industry. Ratios can be used to make estimates for business plans and future developments.
Overviews – Discussion on the history, current state, and future trends of a given industry.
