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Industry Analysis

Industry analysis tools and frameworks are essential for understanding market dynamics, competitive landscapes, and strategic positioning. These tools and frameworks offer various lenses through which businesses can analyze their environment, make strategic decisions, and identify opportunities for growth and improvement.

ToDo_Content: Add Images, Case Studies, highlights from popular culture (e.g. SWOT in silicon valley), interesting derivatives (all the copycats after the BCG matrix) etc.

Summaries​

SWOT Analysis:​

  • Description: Evaluates strengths, weaknesses, opportunities, and threats related to business competition or project planning. It helps organizations identify internal and external factors that could impact their objectives.
  • Application: Strategic planning, marketing strategies, business development.

PESTEL Analysis:​

  • Description: Analyzes external factors that might affect an organization, categorized into Political, Economic, Social, Technological, Environmental, and Legal aspects.
  • Application: Market research, strategic planning, risk management.

Porter’s Five Forces:​

  • Description: Developed by Michael E. Porter, it assesses five competitive forces that shape every industry: threat of new entrants, threat of substitutes, bargaining power of customers, bargaining power of suppliers, and industry rivalry.
  • Application: Competitive strategy development, market entry analysis.

Value Chain Analysis:​

  • Description: Breaks down the process by which businesses receive raw materials, add value to them through production, marketing, and other processes, and sell finished products to customers. It identifies key activities that create value and cost in a business.
  • Application: Operational improvement, competitive advantage analysis.

BCG Matrix:​

  • Description: A portfolio management framework that categorizes business units or products into four categories based on market share and market growth: Stars, Question Marks, Cash Cows, and Dogs.
  • Application: Strategic management, portfolio analysis.

Ansoff Matrix:​

  • Description: Focuses on a business’s growth strategy by examining products and markets. It outlines four strategies: Market Penetration, Market Development, Product Development, and Diversification.
  • Application: Strategic planning, marketing strategies.

Porter’s Generic Strategies:​

  • Description: Outlines three strategic options available to organizations for gaining competitive advantage: Cost Leadership, Differentiation, and Focus.
  • Application: Competitive strategy formulation.

McKinsey 7S Framework:​

  • Description: Analyzes organizational effectiveness by examining seven key internal elements: strategy, structure, systems, shared values, skills, style, and staff.
  • Application: Organizational change, performance improvement.

Blue Ocean Strategy:​

  • Description: Encourages businesses to create new market spaces or "Blue Oceans" that are uncontested, rather than competing in overcrowded industries or "Red Oceans."
  • Application: Strategic planning, innovation management.

VRIO Framework:​

  • Description: Evaluates a firm's resources and capabilities to determine their potential to provide a competitive advantage. The components are Value, Rarity, Imitability, and Organization.
  • Application: Resource-based strategic planning, competitive analysis.