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Industry Analysis: The Bigger Picture
July 2013
©David Mayes 1
Industry Analysis: The Bigger Picture
David Mayes, Lecturer
©David Mayes 2
Introduction
1. Lecturer Introduction
2. What is Industry Analysis?
3. Why Industry Analysis?
4. Suggested Reading
Industry Analysis:
The Bigger Picture
©David Mayes 3
Lecturer Introduction
©David Mayes 4
Industry Analysis:
The Bigger Picture
Industry Analysis
Lecturer Introduction
David Mayes:
LinkedIn Profile: http://www.linkedin.com/in/mayo615
Google+ Profile: https://plus.google.com/u/0/118299264663896711410/about
Email: [email protected]
UBC Office: EME 4157 (250) 807-9331 Hours: Thurs. 12PM – 2PM or by appt.
Cellular: (250) 864-9552
Twitter: @mayo615
Experience:
Executive management, access to venture capital, international business development,
sales & marketing, entrepreneurial mentorship, technology assessment, strategic planning,
renewable energy technology.
Intel Corporation, 01 Computers Group (UK) Ltd., Mobile Data International, Silicon
Graphics, Sun Microsystems, Ascend Communications, P-Cube, Global Internet Group
LLP, New Zealand Trade & Enterprise.
©David Mayes 5
Introduction
1. Instructor Introduction
2. What is Industry Analysis?
3. Why Industry Analysis?
4. Suggested Reading
©David Mayes 6
Industry Analysis:
The Bigger Picture
What is Industry Analysis?
©David Mayes 7
Industry Analysis:
The Bigger Picture
Industry Analysis
What is Industry Analysis?
A Proposed Definition of Industry Analysis:
Industry analysis looks at long-term trends and forces that affect an
overall industry.
It is a strategic analysis tool used by governments, economic development
agencies, financial services & investment firms, management consultancy
firms, and businesses. Current estimates and future industry projections
may include consideration of a broad range of global and local factors:
economic, supply and demand, individual competitors, other external
future forecasts, and government policy affecting the industry.
Industry analysis is commonly performed within the framework of macro-
economic analysis as well as market analysis theories and tools.
©David Mayes 8
Industry Analysis
What is Industry Analysis?
Industry Analysis As A Discipline:
• Best known in the financial services industry • Industry performance & forecast guides for investors
• High profile industry analysis consultancy firms • IDC, Gartner, Forrester, dozens of others in vertical markets
• Used as a strategic planning tool by companies
• “How to” guides/textbooks very limited, but
masses of primary statistics and reports • Seen as between macro-economics and market research
©David Mayes 9
Macro Economy:
Global, Regional, National
An Industry:
Global, Regional, National
A Market:
Can Be Industry Sub-segment(s)
Competitor(s)
Us
Industry Analysis
What is Industry Analysis?
Hierarchy of Economic Analysis
OUR FOCUS
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Industry Analysis
What is Industry Analysis?
IDC Forecasts Worldwide Semiconductor Revenues Will
Reach $305 Billion in 2012
IDC Forecasts Worldwide Semiconductor Revenues Will Reach $305 Billion in 2012
Business Wire FRAMINGHAM, Mass. -- December 15, 2011
“Despite the continuing global macroeconomic problems, semiconductor inventory overbuild early this year,
and current DRAM oversupply, semiconductor revenues will register positive year-over-year (YoY) growth
of 3.4% and 3.1% with $296billion and $305 billion for 2011 and 2012, respectively, according to the
year-end 2011 update of IDC's Semiconductor Application Forecaster (SAF)."The 2011 year-end update
reaffirms the views IDC expressed in its qualitative SAF update published in November 2011….”
Yada yada yada…
Full Report Price: $1,000, other reports up to $10,000
Industry Analysis Example
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Industry Analysis
What is Industry Analysis?
http://www.youtube.com/watch?v=31SpS3
6ynDs&hd=1
Semiconductor Industry Analysis:
Intel Cuts 2012 Outlook on Hard Drive Shortage
(Flood in Thailand)
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Industry Analysis
What is Industry Analysis?
http://www.youtube.com/watch?v=-
I50V4PO1y4&feature=g-
wl&context=G25b6f51AWAAAAAAAAAA
Information Technology Industry
Analysis:
Samsung Economic Research Institute
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Industry Analysis
What is Industry Analysis?
http://www.economist.com/node/21541746
The Economist on Video Gaming:
World of Warcraft vs. New Market Entrants
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Industry Analysis
What is Industry Analysis?
http://www.dailymotion.com/video/xblts0_in
dustry-analyst-jesse-divnich-on-
v_videogames
Video Gaming Analyst Jesse Divnich
on the Video Games Industry
©David Mayes 15
Industry Analysis
What is Industry Analysis?
Answer: Huge consumption of microprocessors for game
consoles
“Over the past two decades the video-games business has gone from a
cottage industry selling to a few niche customers to a fully grown branch of the
entertainment industry. According to PricewaterhouseCoopers (PwC):
• Global video-game market worth around $56 billion last year.
• More than twice the size of the recorded-music industry
• Three-fifths the size of the film industry, Including DVD sales
Video games will be the fastest-growing form of media over the next few
years, with sales rising to $82 billion by 2015.”
-- The Economist. December 10th, 2011
How Does The Video Games Market Relate to the
Semiconductor Industry?
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Industry Analysis
What is Industry Analysis?
Leading Industries in Canada (GDP):
• Aerospace (5th largest in the World)
• Agri-food (4th largest exporter)
• Automotive (3rd largest exporter in World)
Leading Industries in British Columbia (GDP):
• Construction
• Manufacturing (?)
• Mining & Gas Extraction
Leading Industries in the Thompson Okanagan (GDP):
• Construction
• Manufacturing
• Services (retail, tourism, etc.)
Key Industries in Canada
©David Mayes 17
Questions?
What is Industry Analysis?
©David Mayes 18
Industry Analysis
1. Instructor Introduction
2. What is Industry Analysis?
3. Why Industry Analysis?
4. Suggested Reading
©David Mayes 19
Industry Analysis:
The Bigger Picture
Industry Analysis
Why Industry Analysis?
ANSWER:
Large scale economic shifts caused by demographic,
geographic, political, technological and social changes
can create new opportunities or can lead to the demise of
a company.
Competitors that can anticipate these large-scale
economic shifts are more likely to survive.
Why Industry Analysis?
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Industry Analysis
Why Industry Analysis?
• Government Policy • Taxation, incentives, international export market development
• Focused Economic Development Programs • Which industries should be promoted?
• Example: New Zealand Trade & Enterprise*
• Institutional/Individual Investment Management
• Tracking Industry Trends and Growth • Management Consultancy Firms
• Strategic Business Decisions on Markets • Individual businesses
Why Industry Analysis?
©David Mayes 21
Industry Analysis
Why Industry Analysis?
• Federal, Provincial Ministries & Economic Development Agencies • Canadian Ministries of Industry and International Trade
• BC Ministry of Energy, Mines and Petroleum
• Central Okanagan Regional Development
• Financial Services and Investment Firms • BMO, CIBC, RBC, TD Canada Trust, credit unions
• Stock brokerages
• Financial news networks
• Management Consultancy Firms • Accenture, BCG, HP, IBM, PWC, Forrester, Gartner, IDC
• Businesses • Executive management, strategic planning units
• Corporate positioning, SWOT, long range planning
Who Conducts and Uses Industry
Analysis?
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Industry Analysis
Why Industry Analysis?
Example:
New Zealand Trade & Enterprise
Marketing an Entire Nation as an Industry
http://www.nzte.govt.nz/Pages/default.aspx
http://www.youtube.com/watch?v=eh-0knDpn5g
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Industry Analysis
Why Industry Analysis?
Example: International Data Corporation
(IDC)
http://www.idc.com/prodserv/maps/consumer.jsp
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Industry Analysis
Why Industry Analysis?
Example: Central Okanagan Economic
Development Commission
http://investkelowna.com/
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Questions?
Why Industry Analysis?
©David Mayes 26
Industry Analysis
1. Instructor Introduction
2. What is Industry Analysis?
3. Why Industry Analysis?
4. Suggested Reading
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Industry Analysis:
The Bigger Picture
Industry Analysis
Suggested Reading:
Suggested Reading:
HBR’s 10 Must Reads on Strategy, Harvard Business Press, 2011 (HBR
article anthology).
Blue Ocean vs. Five Forces, Burke, A.E. (HBR journal article, online)
http://toby.library.ubc.ca/subjects/subjpage2.cfm?id=660
How to Conduct An Industry Analysis, Small Business and Technology
Development Center, http://www.sbtdc.org/pdf/industry_analysis.pdf
©David Mayes 28
©David Mayes 29
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