Industry Analysis direction and framework

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start with: "Enterprise, Industry and industry", or from the production process point of view, to separate a link, and then an industry including which is very obvious.

Where the terminology is explained: industry and Market

An industry is a collection of enterprises that produce the same type or a highly fungible product or service, while an industry is a collection of industries that have a collaborative relationship with the output of a product or service.

What we call "market Size" is the sum of the buyers ' spending, not the sum of the sellers ' sales.

Finally, emphasize the industry = supply, market = demand.

Then, what should be the first step in industry analysis ?

Surely, must, and undoubtedly, you should first understand what the industry you are studying is. So how do you know what you're studying? I think if you do three things, you can say you already know what the industry you are studying is.

One, definition, second, classification, third, history .

1) definition

The definition of the industry has several key elements, the first key element-the research purpose. Define the second key element of the industry-the product.

2) Classification

First, the classification is to be done on the basis of definition, the second is to do deep research on the need to do as much as possible to segment the industry. This is because the role of the subdivision industry is like the study of material composition, the more you divide the industry, the easier you will be to understand the nature of the industry and the rules of operation.

For example, the software industry can be divided according to the nature of the software users-personal consumption software market and enterprise software market, can be divided according to the level of software products-basic software, middleware and application software, according to the user's region to divide-China, the world, East China, Beijing 、......, according to the size of users-large, Medium, small, and so on. Therefore, only unexpectedly, there is no division, if not for a specific purpose, no specific purpose of the definition as a basis, your classification will be difficult to effectively support the follow-up study.

Because the purpose of the classification is to narrow the scope of the study, so that you can focus on the problem, so one of the most direct criteria is to maximize the object that you are studying just in a category, just good refers to completely contained, and can not cross into other categories. For example, the software industry, you have to study UF company, that according to the level of software products as a first class classification standard is appropriate, because UF only do application software. But you have to study Kingdee company is not, because he application software and middleware are done.

In addition to the first level of classification, we also need further segmentation to more in-depth to grasp the industry. Exactly how many layers are needed to be considered fine enough? This is not a destiny, but personally think it is best for you to get the final level, all the categories are directly in the market to sell the specific products, then you can. Plainly, this layer can not be divided, and then into the upstream parts of the industry to go. Or conversely, any product sold on the market can be found directly at the last level of your classification, which is the most granular level. Another detail, not necessarily each level of classification has the same multilevel sub-classification.

3) Understand the history of industry development

Understanding the past development process of the industry can bring us three basic benefits: first, the starting point contains the fundamental value of the industry. The product was originally created when it is generally very simple to point to a specific user needs, but with the development of the industry, the profit model will become more diversified, leading to the industry's fundamental value is submerged, so from the beginning of easy back to basics. Second, the development reveals the direction of industry differentiation. The process of industry development is also the process of enterprise strategy and profit pattern, and understanding the process of differentiation will help to understand the internal causes and laws of the current industry pattern formation, and help to judge the direction of future evolution. Third, the historical information set up the industry's full picture. The understanding of the status quo is the face, only enough historical information to build a complete industry face. This contains the product, technology evolution, enterprise growth, turnover, user preferences change, reincarnation, policy changes, and even iconic characters floating.

It would be a blessing if we could find the industry history written by senior man, but if we can't find the ready-made, or can find only fragments and scattered information, we can also organize our own collation. The development of the industry revolves around products and enterprises, because this is the essence of the industry characteristics of it (do not remember the words can go back to see the industry Research Primer Experience (a)). In addition to the "XX industry history" and other similar keywords to search information, you can also be on the industry's well-known company's website to collect the history of the company, its own integration. If you have the conditions you can also access some of the industry's long-term development or leading enterprises in the senior people to listen to them in the industry of those people and things. You can also visit a number of professional web forums to collect historical information, especially for technical tracking, some technical staff of the Forum is very helpful.

4) Industry Research examples:

Http://bbs.pinggu.org/thread-879571-1-1.html

5) Study how to continue in-depth

When we have a general idea of the definition, classification and basic history of an industry, how do we continue to delve into it?

What is the operation Law of the industry? The most famous example is the Moore's law of the--ic industry. The law is simple enough to say that the number of transistors integrated into an integrated circuit doubles every 18 months. The extension is that every 18 months, the microprocessor performance doubles, or the same performance price halved. This industry rule has helped the industry to accurately predict the industry's direction for decades. If you can find an industry law like that, you'll be able to do it in the world. Of course, like the IC industry, technical factors dominate the development of the situation in most industries do not exist, the overall development of the industry is often a combination of factors. The classic framework for analysing this issue is the Porter's five-force model, which is the industry's competition, market demand, suppliers, potential entrants and alternatives five influential forces. Among them, market demand is a fundamental industry influence factor, and the requirement law is of course the model used to explain the relationship between marketing mix and user's purchase intention, purchase behavior, such as the demand price curve explaining demand and price relation, demand elasticity, marketing project explaining advertising, promotion and sales relationship. Of course, Professor Porter's design is mainly from a competitive perspective of the industry impact strength, and from the broader impact of the pets (political, economic, technical, social) framework can be used for reference. Especially in China, * * has a wide and huge impact on the industry, and the grasp of the laws of the activities will help you master the future of the industry in China. For example, * * For the industry that involves the nation's livelihood is a kind of processing mode, for the industry involved in cultural ideology is a kind of processing mode, the export-oriented industry is a kind of model, to domestic demand-oriented industry is a kind of model, in short, understand the behavior pattern is also an important thing.

Industry Research Reference Framework Http://1057.cnc.pinggu.com/forum/month_1103/1103202010c58f24306cf177e9.jpg

5 Major model indicators:

Political (policy): social stability (usually as an implicit factor, not an analysis), Industrial policy (restriction or incentive policy), Articles of Association of International Organizations, restrictions, regulations of the Trade Organization, etc.

Economics: Macro Analysis (economic cycle, GDP growth rate, interest rate, exchange rate and monetary policy), micro-analysis (individual income level and income structure)

Social culture: population structure, family structure, consumption structure, attitude to work and life, attitude towards products, preference of saving

Technology: Technology Trends and technology policy

The law is used to explain "why". To explain "why", we clearly first have to grasp "what", we have mastered the "why" after we can tell the relevant people "what to do."

Industry Analysis direction and framework