The Industry Analysis

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The Industry Analysis and Market Analysis Your
research will be a combination of primary
research and secondary research
Management 390 Senior Seminar, Megan Fox
fox_at_simmons.edu
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Primary Business Research

• Primary research for a business plan is
  firsthand, raw data, which you have to collect
  yourself in order to find out the answer to one
  of your questions or assumptions.
• Often involves administering surveys and
  questionnaires or conducting interviews or focus
  groups with potential customers or with existing
  companies and competitors.
• Often the only way to get very specific
  information, such as the demand for a product
  from a narrow target audience (specific age group
  or geographic location), or users' preferences
  about product or service enhancements.

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Primary Business Research

• Methodology
• interviews, focus groups, surveys/questionnaires
• via mail, email, phone, in front of a store
• Who gets sampled? Number process of selection.
• Data collection open vs closed questions
  normative rankings
• How to analyze the data and incorporate it into
  the business plan?

Many supporting books in the Library search the
Online Catalog
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Secondary Business Research

• Secondary research are materials that interpret
  or analyze facts and statistics.
• Secondary research is what you can find using
  Library resources - it includes articles, books
  and statistics compiled by a reliable authority
  that you can cite in your industry analysis and
  final business plan.
• Common secondary research would be an overview of
  the industry, market size of the industry,
  demographic data, competitors and their market
  share, projections for the demand for the product
  in the future.

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Secondary Business Research

• Advantages
• Cheaper, faster, easier
• Challenges
• Too board in terms of the definition of the
  industry, geographic breadth, type of consumer.

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Industries SIC / NAICS Codes
What is a SIC - http//library.willamette.edu/agsm
/sic.htm The Standard Industrial Classification
(SIC) is a 4-digit code originally developed by
the Office of Management and Budget to facilitate
statistical economic analysis and reporting of
the state of the U.S. economy based on
enterprises engaged in production, trade, and
service. What is NAISC - http//www.census.gov/e
pcd/www/naics.html North American Industry
Classification System (NAICS) is a 6-digit code
developed jointly by the U.S., Canada, and Mexico
to provide new comparability in statistics about
business activity across North America. Search
for a SIC/NAISC - http//www.osha.gov/oshstats/sic
ser.html Standard Industrial Classification
Manual HC 106.6 NAICS - North American Industry
Classification System HC 106.6
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Industry Descriptions Overviews
Resources that present an overview of the nature
of the industry, its current state, its history
and/or the outlook for its future
Industry Surveys from Standard and Poor's
Comprehensive overviews of 52 major U.S.
industries. Marketline from Datamonitor. Over
3000 niche industry overviews. Global Market
Information from Euromonitor - 6-year historic
market size data for more than 330 consumer
products in 52 countries 4,500 market reports,
offering in-depth strategic analysis for
consumer, industrial and service
sectors Encyclopedia of American Industries HC
102 .E53 Over 115 industries are profiled,
including industry snapshots and employee size.
Encyclopedia of Emerging Industries
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Trade Associations
Groups of people or companies in an industry,
organized to improve their industrys and
members performance Provide statistics and
information on their industry sometimes conduct
their own research, or interpret research of
others
Use google - association industry name
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Industry News and Statistics
Market Size/Share, Major Players/Products,
Rankings

• Trade Journals, in databases such as PROMT and
  Tablebase
• A trade journal is a magazine devoted exclusively
  to the needs of a particular industry.
• Provides broad range of news and current
  information personnel changes in leading
  companies, new products, major contracts, warn of
  impending changes in government regulations,
  industry trends, management techniques, ongoing
  statistics that are difficult to find elsewhere.
• General News Sources, such as Lexis Nexis
• Books (older) such as Market Share Reporter,
  World Market Share Reporter

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Market Research Reports
In-depth studies conducted by market research
firms to analyze a particular industry, product
or business trend. Typical components market
size, major players, forecasts Generally very
expensive but great snippets for free on the Web

• Reuters Business Insight
• Marketresearch.com
• MindBranch.com

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Demographics and Market Segments
Characteristics of human populations and
population groups. Used to identify
characteristics consumers have in common to allow
for targeted marketing and a better chance of
return on investment.

• By demographic/socioeconomic characteristics
  age, race, gender, income, marital status
• Psychographics Attitudes, aspirations, beliefs,
  self-images, life-styles (hobbies, how spend
  leisure time)
• Tracked by things such as manufacturer warranty
  cards, when asked for zip code at check out,
  discount cards
• Good examples are the Tablebase Concept Terms

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Demographics
Global Market Information - lifestyle indicators
such as eating and drinking habits, home
ownership trends and crime patterns for 71
countries worldwide The Sourcebook of Zip Code
Demographics. HA 203 .S66 Includes population,
number of households, and race and age
distribution information by zip code. The
Lifestyle Market Analyst. HF 5415.3 .L56 Provides
information on a local, regional and national
level.  American Demographics magazine and Web
site All the New Strategist publications National
and Local Government Sources, such as
Statistical Abstract of the United States MA
Office of Business Development -
http//www.state.ma.us/mobd/data.htm Municipal
Data (MA by city) - http//www.detma.org/lmi/loca
l/local.htm State of MA Community Profiles -
http//www.state.ma.us/cc/index.html
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Company Directories and Overviews (Competitors)

• Career Search
• Bigyellow.com - a total of over 12 million
  business listings nationwide
• Hoovers (print and online)
• Business Source Premier Company Profiles

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Industry Financial Ratios
RMA Annual Statement Studies HG4028.B2 R6
Composite financial ratio data on more than 500
industries. Data is compiled from more than
140,000 companies including small and
medium-sized firms. Almanac of Business and
Industrial Financial Ratios by Leo Troy HG 4028
.B2 T68 Performance data for 50 operating and
financial factors in 179 fields of business.
Industry Norms and Key Business Ratios HG 4028
.B2 I54 U.S. Companies represented by over 800
SIC Codes. Standard Poors Industry Surveys
database