Industry Research

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.

Industry Classifications

SIC Code- SIC Code Manual Standard Industrial Classification Code.  A U.S. Government classification system not updated since 1987.  Most publishers of industry sources still use this code system.  New technologies and industries are not well covered.

NAICS – SIC/NAICS Conversion North American Industrial Classification System.  This is the replacement for the SIC Code.  NAICS was designed to accomodate the NAFTA Treaty and to cover the many new industries that have been created since 1987.

Industry Statistics

Business & Industry/Tablebase: Industry & trade publications with good international coverage

US Economic Census: Recent information on industries.

Associations Unlimited: Associations support businesses within specific industries they can be powerful sources of statistics and support.

Industry Overviews

Business & Company Resource Center: Database with industry information including rankings, market share, & associations.  Also full-text essays for industry overviews.

Business Source Premier: Business magazines & journals; industry reports, and company analysis.

NetAdvantage: Choose Industry at the the top; then select the relevant industry survey.

Searching the business news

ABI/Inform Global: Find research on advertising, marketing, economics, human resources, finance, taxation, computers, and more.

ABI/Inform Trade & Industry: journals and articles on specific industries

Business & Company Resource Center: Information on companies, rankings, suits & claims, and much more.

Business Source Premier: Business magazines & journals; industry reports, and company analysis.

Porter’s Five Forces

QuickMBA: Porter’s Five Forces
Discusses the five forces, including rivalry, the threat of substitutes, buyer power, supplier power, and barriers to entry.

Investopedia: Industry Handbook
The Industry Handbook provides examples of 5-forces analysis for a selection of industries. Also has an explanation for the 5-forces model: What is Porter’s 5-Forces Analysis?

SWOT Analysis

QuickMBA: SWOT Analysis
The role of SWOT analysis (strengths, weaknesses, opportunities, and threats) in strategic planning, including an overview of the TOWS matrix.

PEST Analysis

QuickMBA: PEST Analysis
How a PEST analysis fits into the environmental scan. Provides some examples of the political, economic, social, and technological factors of the external macroenvironment.