Chapter 6 · 8 of 100 marks · workbook pages 105-129
Industry Analysis
Defining an industry, cyclicality, sizing and trends, value migration and life cycles, Porter's five forces, PESTLE, BCG and SCP, industry KPIs, regulation, taxation and sources.
Focus
- Industry definition
- Cyclicality
- Market sizing
- Value migration
- Porter, PESTLE, BCG, SCP
- KPIs and sources
Must know
- Industry analysis connects macro conditions to sector-level opportunity, risk, and competitive structure.
- Porter's five forces test rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants.
- BCG classifies businesses by market growth and relative market share: stars, cash cows, question marks, and dogs.
- Industry KPIs must match the business model, such as ARPU for telecom, occupancy for hotels, and load factor for airlines.
Traps
- A high-growth industry is not automatically attractive if competition destroys returns.
- Define the industry boundary before market sizing.