Industry/company analysis is considered as a tool that offer a business an idea about the level of complexity pertaining to that particular sector. It primarily involves reviewing the economic, political and market factors that can stimulate the process by which an industry or a company can grow.
In order to start-up a new business in a particular industry, it is extremely important for the owners to analyse the concerned industry in a proper manner. It provides an opportunity to the owners to assess the strengths and weaknesses of that industry and thereby formulate effective business strategies. In other way, it can also be stated that a thorough industry analysis helps the managers to identify the factors that can drive the concerned business or slow down its growth prospective.
Capability of conducting an effective industry or company analysis is extremely important for the students who want to pursue their career as equity research analyst. The equity research analysts are required to analyse a particular industry by investigating its historical trends, demand-supply mechanism and future growth prospective. An ideal report on company analysis should shed light on the economic status of the company and whether the company will be able to maximise the benefits of the shareholders in the coming years. One of the major objective of industry analysis is to suggest the shareholders whether investing to a particular company or sector will be profitable or not. Moreover, such analysis also intends to identify the loopholes of a particular company and recommend the required corrective actions to the company management. Reflecting on the industry dynamics cis considered as a basic requirement while preparing an industry analysis report. Our experts have vast experience in developing high quality industry/company analysis report from the various sectors such as oil and gas, metal, information technology, automobile, financial services, infrastructure, pharmaceuticals and consumer durables.
Industry analysis is treated as a complicated process that involve significant amount of time and effort. If any of the aspects are overlooked, the entire analysis may become useless. Hence, our experts follow the below mentioned steps to conduct a detailed industry analysis report.
All the relevant industry reports related to the particular sector are being analysed to acquire the required facts and figures. It helps the experts to conduct an in-depth analysis on the particular sector. However, in the case of volatile industry, sole dependency on the historical data may not be sufficient to conduct an industry analysis report.
Demand and supply is treated as one of the most fundamental factors governing to the particular market. Therefore, while preparing the industry report, it is vital to analyse the demand-supply scenario of the market.
Competitive scenario of the industry is being conducted with the Porter’s Five Forces model. With the help of these model, the following five aspects of the industry are being analysed:
In the industry analysis, it is also important to highlight on the recent developments. It allows the investors to assess whether the investment will be prospective or not.
Most importantly, while developing an industry analysis report, our experts focusses on the industry dynamics. For instance, an analysis of aluminium industry requires to provide the data related to the per capita consumption aluminium.
While developing the industry analysis, specific tools such as Porters’ five forces, PESTEL analysis and others are used. On the other hand, company analysis is being conducted with financial techniques. For instance, profitability analysis or valuation of the particular company is being conducted by our experts to determine the investment opportunity in that company from the perspective of an investor. While conducting the company analysis, our expert compare the company financials with the industry benchmark and also with the competitors. Accuracy of the result, in-depth research and critical analysis are some of the major points that our expert concentrate while preparing the industry analysis report.