The industry is ruled by several factors, many of them variable ones. For a brand that is working in a particular industry for some time, these factors become known and it is easier to predict the variable factors as well. But for a new entrant to the arena, the research work required is far more detailed and large in scale. It is always a good idea to conduct a thorough industry analysis before embarking on a business venture, online or offline. By the help of an industry analysis you will be able to identify the strengths of the market and also put a tag on the weak chinks.
An industry analysis cannot be done in a haphazard, half-baked manner. You will need to study the market systematically. Let us begin with the suppliers. Will you be able to get the supplies that make up your business? For example, if you plan to kick-start a website, you have to look at how easily you can get web designers, software and content writers. You must tie these requirements with your budget. The expenditure you need to incur to get these supplies on board must be within your means. An industry analysis with no consideration for the expenditure section of the ledger is doomed to fail.
Now look at your customers. What are they getting at present from the market? Is there a gap between their expectations and the products/services available? You have to bridge this gap in order to make a quick impact as a new player in the market. An industry analysis must include a chapter on the competition around you in the same domain. Be truthful is giving credit to your competitors where it is due. That is the best way to position your own brand. You may not score over your competitor on features but you have to beat them in prices or other sections.
The motive of an industry analysis is not just to study where you are stepping in, but also to understand where you fit into the market. Knowing your own place will pay rich dividends for you when you start operating as a brand. Brand positioning, as you know, has a lot to do with initial success or the lack of it. Base your brand’s positioning on the industry analysis you have at hand. That will tide you over the initial hiccups.