INDUSTRY

ANALYSIS
LESSON 3.3
COMPETITION
IT IS VERY IMPORTANT THAT YOU KNOW YOUR
COMPETITORS AND BE READY FOR THEM. YOUR AIM
IS TO WIN THEIR CUSTOMERS, CONVINCE THEM TO
BUY FROM YOU INSTEAD, AND REMAIN AS LOYAL
CUSTOMERS.
CUSTOMERS
WHO WILL YOU SELL YOUR PRODUCT TO?
THE TARGET MARKET MUST BE IDENTIFIED.
SUPPLIERS
EVERY RETAIL BUSINESS NEEDS SUPPLIERS FROM WHOM ONE
CAN SOURCE RAW MATERIALS, INTERMEDIATE PRODUCTS,
OR EVEN THE FINISHED GOODS ONE INTENDS TO RESELL.
A BUSINESS MAY NEED ONE OR MORE SUPPLIERS. IT IS
IMPORTANT TO DEVELOP SUPPLIERS WHO ARE RELIABLE IN
TERMS OF THE QUALITY OF WHAT THEY SUPPLY AND THEIR
DEPENDABILITY IN COMING UP WITH THE THINGS YOU
ORDER FOR THEM.
SUPPLIERS
THE PRICES ARE HIGHER BUT THEY CAN SELL IN
SMALL QUANTITIES, WHICH THE
MANUFACTURERS WOULD NOT NORMALLY DO.
SUBSTITUTES
-ARE GOODS THAT CAN BE USED IN PLACE OF ANOTHER.
THESE ARE GOODS THAT MAY, EVEN IF PARTLY, SATISFY
THE SAME NEEDS OF A CONSUMER SUCH THAT THE
CONSUMER MAY USE ONE INSTEAD OF ANOTHER
-THIS IS WHY MANUFACTURERS TRY TO DIFFERENTIATE
THEIR PRODUCTS FROM THEIR COMPETITORS SO THAT
THE CUSTOMERS WILL DEVELOP PRODUCT LOYALTY FOR
THEIR BRAND.
A GUIDE TO INDUSTRY ANALYSIS
1. GEOGRAPHIC AREA 7. A BRIEF HISTORY OF THE INDUSTRY
2. INDUSTRY (AS T O SIZE) 8. FACTORS THAT AFFECT GROWTH OF
THE INDUSTRY
3. PRODUCT
9. TRENDS IN SALES OVER RECENT YEARS
4. BUYERS
10. CURRENT
5. REGULATORY ENVIRONMENT OPERATIONAL/MANAGEMENT
6. COMPANY INFORMATION 11. THE TYPES OF MARKETING
STRATEGIES PREVALENT WITH THE
INDUSTRY
12. COMPETITOR INFORMATION
ENVIRONMENTAL
ANALYSIS
LESSON 3.4
ECONOMIC FORCES
INVOLVES INCOME OF THE PEOPLE,
SPECIFICALLY THE TARGET MARKET, ECONOMIC
CONDITIONS SUCH AS INFLATION, RECESSION,
PROSPERITY, DEMAND, AND SUPPLY IN THE
MARKET
PHYSICAL ENVIRONMENT
INCLUDES POPULATION SIZE, THE GEOGRAPHY
OF THE PLACE WHERE BUSINESS WILL BE
LOCATED, LAND DISTRIBUTION, CLIMATE, AND
IN TODAY’S GLOBAL WARMING SITUATION,
WHETHER OR NOT THE AREA IS PRONE TO
FLOOD OR EARTHQUAKE.
POLITICAL FACTORS
THE TYPE OF THE GOVERNMENT, THE STABILITY
AND STRENGTH OF THE GOVERNMENT, AND
GOOD LEADERSHIP ARE FACTORS THAT CAN BE
AN ADVANTAGE TO A BUSINESS.
CULTURES AND LIFESTYLES
CULTURAL PRACTICES SUCH AS FIESTAS,
CELEBRATION OF THE CHRISTMAS SEASON,
TRENDS IN CONSUMPTION PATTERNS, AS A
MEANS TO IDENTIFY THE GOODS AND
SERVICES.
COMPETITION
THE DEGREE OF COMPETITION IN THE MARKET
AND THE EXTENT AND STRENGTH OF
COMPETITION ARRE ALL VERY VITAL IN
DETERMINING THE SUCCESS OR FAILURE OF A
BUSINESS.