By conducting a thorough industry analysis, you gain insights about your competitors. You can use these insights to help you develop a marketing plan to move your business forward. As you evaluate your competitors and their weaknesses, you may see opportunities to capitalize on those weaknesses. For example, if you’ve noticed that your competitors tend to offer an impersonal customer service experience, you could mention in your marketing materials that your business offers personalized service.
An industry analysis also offers insights for business planning. Once you’ve identified threats to your industry, you can implement a plan to mitigate those threats. For example, if your business offers technical support to other business owners, you might capitalize on the threat of cybersecurity lapses by offering robust, closely monitored security services that use the latest technology.
Industry analysis is also a critical component of a business plan. Including a thorough industry analysis in your business plan demonstrates to investors that you understand the potential opportunities and pitfalls of your business. It shows that you’ve given careful consideration to what makes your business unique and attractive to consumers.
Although conducting an industry analysis can be time consuming, it’s well worth the effort. You can find opportunities for success and proactively protect your business from potential threats to your industry. It’s a tool for reflecting on your business and its future within your industry.