Industries can be broken down into specific segments or sub-segments. How big is the industry you compete in, what are the segments and how big are they? What is the market share by segment of the competition?
What is happening and projected to happen in the industry and the segments within the industry? Are there unique product/service trends, is technology altering the industry? Have the Barriers to entry changed as result of external factors? Do the emerging trends create opportunity or threats?
Key Industry KPI’s
There are typical financial Key Perormance Indicators that cut across almost every industry – Gross Margin, Quick Ratio, Acid test, Days of receiveables, days of Inventory, Return on Equity, return on Assets , etc. However, each industry also has unique KPI’s that are specific to their industry. We need to know what top quartile companies achieve across these KPI’s to know what we need to target to be successful.
Existing and Future Competition
We touch on the competition in a number of areas of analysis but there needs to be one place where specific competitive data is compiled on an ongoing basis to ensure we stay aware of competitive activity. Who are they, how big are they , what are their diferentiated strengths, what are their vulnerabilities? Are the unique barriers to entry? Could current non- competitors from other industries enter our market? What trends identified would atract additional competition?