An industry research report is a document that assesses a certain industry and the businesses that operate inside it. An industry research report, which is frequently included as part of a business plan, aims to determine how your company can obtain an advantage in a certain sector by understanding the industry’s history, trends, competitors, goods, and consumer bases.
Furthermore, this form of the report enables investors, lenders, and customers to comprehend an industry’s makeup.
Assess the Scope of your Industry
When conducting industry research, start by looking over market research papers from the previous several years in your sector. What changes have occurred in your field, and why have they occurred?
If you go deep enough, you’ll discover a wealth of publications, white papers, analyses, research reports, and presentations. If you don’t know much about the industry you’re trying to study, start with these resources to learn about them. Read all you can and find the essential components that will aid you in writing the report when you’ve done your research. These studies and data won’t be able to fully assist you, but they will give you a good notion of what to look for while researching the industry.
Get a Sense of the Appropriate Industry:
You may be looking for information about the real estate sector. However, real estate is a massive industry with numerous sub-industries such as residential complexes, commercial properties, hotels, and the amusement industry, to name a few. You must first gain an understanding of the appropriate industry. You’ll lose focus if there’s no relevance in the industry you’re looking for, and the analysis won’t be able to locate precise data.
As a result, it’s critical to concentrate on the relevant industry. It will be hard to create an accurate industry analysis report without this.
So choose an industry and research its sub-industries. Choose the one that best fits the company’s goals. Furthermore, it is useful to investigate the various market segments within a given business.
Balance of Demand and Supply
Demand and supply are the principal drivers of every market. As a result, looking into the demand-supply environment for a specific product or sector by researching previous trends and anticipating future prospects becomes important.
To determine the economic health of the company under review, you can do a comparative analysis with other companies that compete in the same way. Future demand and supply forecasting aid investors in determining the profitability and risk of future investments.
Examine Your Industry’s Key Financial Measures
In your field, how do you measure success? This is an important factor to investigate and incorporate in your industry research. It demonstrates the KPIs you should strive for to succeed in your new firm. It also serves as a tangible indicator of success for investors.
Include information on the industry’s average profit margins. What are the typical prices for everyday items? What are the expenses of production or materials? Understanding these elements will assist you in developing a solid financial model for your company, demonstrating to investors that you have a strategy in place to achieve your goals.
Study the Industry’s Major Players
The competition research is an important aspect of the industry analysis. You may begin to establish a unique approach for your business by understanding which other businesses are competing in the same sector.
To begin, look into the industry’s corporate giants. These are the key firms that control a significant portion of the market. What kind of goods or services do they provide? What marketing strategies do they employ? What kind of charges do they have for their clients? Is brand loyalty an important factor in their success? It’s also critical to determine whether their target market is the same as yours.
While they may offer identical products and services, they may target a different demographic, which could work to your benefit.
Recognize your Direct Competitors.
Make a list of your direct competitors and incorporate that information in your industry study. Other small businesses selling similar products and services, as well as large and medium-sized enterprises operating in the same industry, could be your direct competitors. Examine the target market for the company to see if they are direct competitors.
Use a SWOT analysis to figure out where you stand with your immediate competitors.
In your Industry research, evaluate your entry Barriers.
It’s critical to mention the obstacles you’ll face in the industry research that could prevent you from entering the market and succeeding. The following are examples of entry barriers:
If the barriers to entry are too high, you’ll need to come up with a new plan or come up with a creative approach to get around them. Examine what your rivals are doing or have done to overcome similar obstacles. If at all possible, go to those businesses in-person to learn more about their operations and marketing techniques.