1 thought on “What is industry analysis?”

  1. Industry analysis includes the following content: [1] The basic situation of the industry, including the development history and status of the industry, and the future development trend of the industry.
    [2] The general characteristics of the industry must first judge the market characteristics of the industry and distinguish whether the industry is in a state of competition or other market state; then it is necessary to analyze which stage of the industry is in the economic cycle.
    [3] Analyze the structure of the industry, including the difficulty of the industry, whether there are alternatives, and the competition of existing companies in the industry.
    This information
    industry analysis refers to the operating conditions of the industry economy, product production, sales, consumption, technology, industry competitiveness, competitiveness, industry competitiveness, and industry competitiveness according to economic principles. In -depth analysis of market competition patterns and industry policies such as industry policies, so as to discover the inherent economic laws of the industry’s operation, and further predict the trend of future industry development. Industry analysis is a mid -view analysis between macroeconomic and micro -economic analysis. It is the only way to discover and master the law of industry operation. It is the brain of the development of enterprises in the industry. Development is of decisive significance.
    The industry is a group composed of many similar companies. If we only conduct an enterprise analysis, although we can know the operation and financial situation of a company, we cannot know the status of other similar enterprises, and we cannot know the position of the company in the same industry. This is very important in the modern economy full of high competition. In addition, the position of the life cycle of the industry restricts or determines the survival and development of the enterprise.
    The carriage manufacturing industry in Europe and the United States before the birth of a car. However, to this day, even the automotive industry has entered the stable period of the life cycle. This shows that if a certain industry is in a recession period, it belongs to the enterprise in this industry. No matter how strong its assets and strong business management capabilities, they cannot get rid of its dark prospects. Who else is willing to invest in carriage production on a large scale?
    Is when considering new investment, investors cannot invest in the “sunset” industry that is about to decline and eliminate. When choosing stocks, investors cannot be confused by the scene in front of them. Instead, it is necessary to analyze and determine whether the industry that the company belongs is in the start period, the growth period, or the stable period or the recession period. Essence
    The industry characteristics are one of the important factors that directly determine the value of the company’s investment. Industry analysis is the prerequisite for analysis of listed companies, and is a bridge connecting macroeconomic analysis and analysis of listed companies.
    The industry analysis aims to define the development stage of the industry itself and its status in the national economy. At the same time, it is compared horizontally to different industries to provide accurate industry backgrounds for final determination of investment objects.
    The purpose of industry analysis is to tap the most investment potential industries, and then select the most valuable listed company.
    It this shows that only by industry analysis can we more clearly know the development status of a certain industry and the position of the industry life cycle it is located, and make correct investment decisions based on this.

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