Why four steps, one analysis
Classic industry analysis asks: how attractive is this industry, who wins in it, and why? We split it into four focused steps so each produces a usable output, then this guide stitches them together.
- External Analysis — the forces shaping the whole industry
- Competitor Analysis — the specific players and their positions
- Business Model — how you will capture value inside that structure
- AI & Tech Strategy — how technology is reshaping the rules
1. Industry structure (External Analysis)
Use PESTEL for macro forces and Porter's Five Forces for profitability.
- Size, growth rate, and life-cycle stage (emerging, growth, mature, declining)
- Supplier and buyer power, threat of substitutes and new entrants, rivalry
- Regulation, economics, and demographic shifts in your geography
- Key success factors every player must master
2. Competitive landscape (Competitor Analysis)
Map direct, indirect, and substitute competitors on the dimensions customers actually care about — price, speed, quality, trust — and find the white space.
- Positioning map and feature/price comparison
- Competitor strengths, weaknesses, and likely responses to you
- Market share estimates and funding signals
3. Value capture (Business Model)
Industry economics dictate viable models. Margins, customer acquisition costs, and switching costs in your industry determine whether subscription, transaction, or licensing models can work.
4. Technology disruption (AI & Tech Strategy)
Assess how AI and automation lower costs, enable new entrants, or shift value along the chain — and whether you will ride or resist that shift.
Pulling it together
Conclude with a one-page industry verdict: attractiveness score, your defensible position, the three biggest threats, and the evidence you will keep monitoring.