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( An IACBE Accredited Institution )
Industry AnalyticsPost Graduate Programme
(2010 – 12)
3rd Term
Alliance Business SchoolBangalore
04/19/23 PGP, Alliance Business School 3
What is Industry Analytics?
Industry analytics is a course of study designed to provide the student with a comprehensive understanding of industry or sector: Global and Indian.
It imparts knowledge and expertise about industry or sector to students.
Each student group will identify and select ONE industry or sector from the manufacturing / service sector in India.
04/19/23 PGP, Alliance Business School 4
Objectives of the Course
After completion of this course, you should be able:o To analysis the Indian economy and its various sectors.
o To provide a comprehensive and focused insight within the sector.
o To acquire skills in analyzing the situation and making broad decisions about industry.
o To understand how industry structure drives competition, which determines the level of industry profitability.
o To assess industry attractiveness (future profit potential).
o To use evidence on changes in industry structure to forecast future profitability.
o To formulate strategies to change industry structure to improve industry profitability.
o To identify Key Success Factors.
The course is aimed at preparing the students on one industry or sector through useful methodologies and knowledge of data, their location, and use of databases.
1.1
Analysis of demandAnalysis of demand
• Who are our customers?Who are our customers?
• What do they want?What do they want?
Analysis of competitionAnalysis of competition
• What drives competition?What drives competition?
• What are the main dimensions What are the main dimensions of competition?of competition?
•How intense is competition?How intense is competition?
•How to obtain a superior How to obtain a superior competitive position?competitive position?
What do customers What do customers want?want?
How does the firm survive How does the firm survive competitioncompetition
Pre-requisites for success
Identifying Key Success Factors
KEY SUCCESS FACTORS
SUPPLIERS
POTENTIALENTRANTS SUBSTITUTES
BUYERS
INDUSTRYCOMPETITORS
Rivalry AmongExisting Firms
Bargaining power of suppliers
Bargaining power of buyers
Threat of
new entrants
Threat of
substitutes
Porter’s Five Forces of Competition Framework
THREAT OF ENTRY• Capital requirements• Economies of scale• Absolute cost advantage• Product differentiation• Access to distribution channels• Legal/ regulatory barriers• Retaliation
SUBSTITUTECOMPETITION
• Buyers’ propensity to substitute• Relative prices & performance of substitutes
SUPPLIER POWER• Uniqueness of service
• Ability to substitute
INDUSTRY RIVALRY•Concentration•Diversity of competitors•Product differentiation•Excess capacity & exit barriers•Cost conditions
BUYER POWER• Buyers’ price sensitivity
• Relative bargaining power
The Structural Determinants of Competition
Chapterisation Scheme
Introduction & Literature Review Global Scenario Country Review Industry Review Analytical Framework Company Review Industry Outlook – Future Prospects
04/19/23 9PGP, Alliance Business School
Chapter 1: Introduction & Literature Review
Introduction of the study – need for the study – importance of the study – methodology – data sources.
Review of existing literature available for the industry/ sector.
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Chapter 2: Global Scenario
The selection of the industry sector will be first studied from a global perspective.
For example, global cement industry; global banking industry, global automobile industry.
Manufacturing sector: industry sector
Services sector: industry sector
04/19/23 11PGP, Alliance Business School
Manufacturing Sector
Global Market Structure: Growth pattern Global Players Global Products Global Technology Global Investments Producers/Production Consumption Sales Exports Pricing Demand and Supply Productivity
04/19/23 12PGP, Alliance Business School
Services Sector
Global market structure: Growth pattern Global players Global trends Global products Global Human Capital
04/19/23 13PGP, Alliance Business School
Chapter 3: Country Review
Industry Structure: Organized Sector
Contribution to GDP
Economic importance: capacity utilization
Employment, gross value added (I/O), employment
Fixed investment (www.mospi.nic.in, I/O tables CSO)
Capacity expansion
Corporate Taxation
Technology process
Exports and imports
CapitalLinePlus, ASI, Planning Commission statistics.
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Chapter 3: Country Review (Service sector) Sector overview Service Tax Act 1996 Regulations and Government Approvals Contribution to GDP Employment Technology Corporate Taxation Trends Consolidation FDI
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Chapter 4: Analytical Framework
1. Technical Analysis: R&D investment, technology processes, upgradation.
2. Commercial Analysis: Cost structure analysis, Pricing analysis.
3. Industry Analysis: Porter’s Five Forces Analysis, SWOT Analysis, 5 Key Ratio Analysis (Debt-equity Ratios, Current Ratios, Turn over Ratios, Profitability Ratios).
04/19/23 16PGP, Alliance Business School
Chapter 5: Company Analysis
Top Five Companies of the sector Bottom Five Companies of the sector Company details: historical background, equity,
profits and losses, sales, assets, turnover, profitability analysis.
Year-on-Year performance analysis based on:
- ratio analysis (five key ratios)
- comparisons with the industry average ratios
- inter-company comparison04/19/23 17PGP, Alliance Business School
Chapter 6: Industry Outlook
Outlook for the Year 2010.
1. Prospects: government policies regulating the industry and
Central Budget 2009 highlights and analysis
2. Projections: Trends – sales, production, employment, capital and
financing, profits and losses, investments; Policy environment:
growth-oriented, dampener
3. Challenges: competition, imports, technology, growth of
consumer and industrial market segments
04/19/23 18PGP, Alliance Business School
Industries can be considered
1. Steel
2. Automobile
3. Cement
4. Information Technology
5. Sugar
6. Textile
7. Power
8. Telecom
9. Aviation
10. Paper
04/19/23 PGP, Alliance Business School 19
11. Banking (Public)
12. Banking (Private)
13. Paint
14. Pharmaceutical
15. Retailing
16. Refinery
17. Aluminium
18. Hotel
19. Biotechnology
20. Hospital