Comprehensive analysis of business knowledge reserve industry

"Industry analysis is the cornerstone of business thinking."-Gorky may have said it.

An accurate industry analysis is the lowest logic for companies to formulate strategies, conduct consulting projects, do market research, set up companies or investors to look at projects. Sometimes we need to conduct in-depth industry analysis and use different analysis tools, and sometimes we need to do quick research. But in these two cases, the core appeal of the analysis is:

Accurate results can give useful conclusions.

When making industry analysis, different starting points will have different emphases. I want to try to summarize a logical framework, which contains the elements that I think are more important and the conclusions that need to be investigated in different stages of analysis. Of course, no business practitioner wants to be limited by a framework. The most important thing is to have a framework suitable for your own thinking logic. Only by mastering eighteen kinds of martial arts weapons can he know what to do and what kind of knife to make in the face of different opponents.

-The following words-

Overall industry research

You can also call it "industry research". Now, commercial times is competing in the segmentation field, but we can't give up the research on the industry environment. Some enterprises will always adhere to deep vertical segmentation (Laoganma focuses on spicy sauce and snacks), some enterprises will choose to start from market segments and expand to big markets (Didi will go from taxi market to big travel market), and some enterprises will choose to cut into the segmentation field from big markets (GUCCI cuts off redundant product lines and focuses on leather goods).

There are three main objectives here:

A. Understand the basic information of the industry (scale, growth, leading share)

B. A preliminary understanding of the upstream and downstream of the industrial chain and value chain

C. make certain trend prediction and judgment.

Basic research can be carried out according to the following "routines":

1. Collect industry-related data

First of all, starting with the most basic data, it is suggested to find more than two related reports and more than three related reports. If the channels are collected, the analysis and research reports of different industries can go through some websites (Analysys, Penguin Zhiku, iResearch, New Third Board Online, Ali Research Institute, etc. ).

The basic information can be very extensive, and you can get the key points quickly, so these data are necessary: the market size, growth and market share of the head enterprise.

Market size: both entrepreneurs and investors are very concerned about the market size, which directly determines how much income an enterprise can get and how many companies it can accommodate;

Growth rate: this piece should explain the average growth rate and compound growth rate. Relatively speaking, the data of compound growth rate is more suitable for understanding the development of enterprises for a period of time. Here's an explanation: the compound growth rate is a geometric progression, with the total amount of growth in the previous period as the base for next year's calculation, and so on. (Algorithm: For example, the growth rate of an industry is 5% in the first year, 6% in the second year and 7% in the third year. Average annual growth rate = (0.05+0.06+0.07)/3 = 6%, compound growth rate = 1.05 * 1.06 *.

Market share: Generally speaking, industry-leading companies can occupy about 20% market share. However, it is difficult to form a market share of 20% in some industries, such as printing and freight industry with very high dispersion. Of course, some industries are prone to monopoly, such as oil and electricity. In this part of the analysis, the replicability of business models in the industry is usually emphasized.

2. Industrial chain and value chain

This is more interesting. Industrial chain is to aggregate the parts responsible for different jobs in an industry to understand the connection, structure and value of participants in each link. Traditional industrial chain analysis is very complicated, involving supply and demand, value, space and so on. General industry analysis can only be done by grasping the upper, middle and lower reaches of the industrial chain.

It is suggested to show it in the form of a chart. When analyzing the industrial chain, we should also consider which places are crowded among different participants, which chains are opportunities to be tapped and the importance of different connection points.

As shown in the figure:

In addition, there are regulators, advertisers and third-party service providers. Can access the industrial chain. Therefore, if further analysis is needed, it can be carried out in the basic industrial chain.

As shown in the figure:

The value chain, as its name implies, often coincides with the industrial chain to find out the value embodiment of different parts in the chain. In the process of analyzing the industrial chain, we can basically understand the information points about the value chain. The analysis of commercial value chain mainly focuses on the value and importance of profit.

Profit value refers to a commodity. In the total chain of "R&D- production-channel-consumption", how much profit does each node take, or conversely, how is the price purchased by the final consumer distributed when going forward and backward? For example, the consumer spent 100 yuan to buy 1 kg freshly ground coffee in the supermarket-the supermarket (retailer) earned 8 yuan from it-the agent (distributor) who supplied the supermarket earned 6 yuan-the coffee brand company (processor) earned 24 yuan-the coffee bean middleman (supplier) earned 36 yuan-the coffee bean farm earned 40 yuan. As can be seen from this chain, the middlemen of coffee beans have made huge profits, which may be because they have mastered the scarce coffee bean resources, so the income of other nodes in the chain will be inclined to this aspect.

Of course, the value chain analysis is not simple, and the chain will not be as short as above. Moreover, market participants with deep pockets monopolize a long section of the chain, thus absorbing the maximum value and reducing the risk.

3. Take out tools and use them

It's time to shine! The purpose is to summarize industry trends. There are many methods, and tools only provide a framework for integrating scattered resources. Based on the previous analysis of the whole industry, you can take out PEST to force X at this time.

P (Politics): The political environment includes a country's social system, principles, policies and laws. Remember, the attitude and influence of national policy characteristics and policy tendencies on organizational activities are also constantly changing.

E (Economy): The economic environment is mainly macro and micro analysis. One is the overall economic environment and development level of the country, and the other is the economic level and consumption preference of consumers.

S (Society): The social environment focuses on residents' values and consumption habits, and the social environment to be analyzed for different industries is also different.

T (Technology): The development and change of technical means directly related to the industry, of course, also depends on the barrier protection formed by relevant patent protection.

After the analysis of the above major industries, we can basically make corresponding judgments on industry trends, and perhaps find opportunities in the analyzed industries. Although this part is the first step of industry analysis, it is the foundation. For mature markets or enterprises that do not intend to do too vertical segmentation, they can simply cooperate with market life cycle analysis and competitor analysis, and output certain business methods by summarizing the key factors of competition.

But let's move on to the next step:

market segmentation study

As mentioned above, Business Times is now a competitive market segment, and market segment analysis focuses on target customers. Therefore, we should be very careful not to regard similar products as related market segments. This part of the analysis also has three main objectives:

A. Characteristics of market segments

B. Life cycle of market (product)

C. what are the main competitive factors in the industry?

Or give a basic research "routine":

1. Identify market segments.

The first is to correctly identify the segmentation, and we should not regard similar products as relevant markets, and at the same time we should not blindly exclude relevant people. For example, in the catering industry, if you are catering mainly for fitness and fat reduction, it will be very independent and can exclude other catering types. However, if you cook Sichuan cuisine, you will blindly exclude Hunan cuisine and Northeast cuisine, because from the perspective of cuisine, there is not much division for consumers, and a large part of the market will inevitably be ignored. Therefore, it is the "real market segment", which has its own characteristics and is effectively different from other market segments in large industries.

When choosing a market segment, two principles are very important: (1) The market segment is large enough and profitable; (2) Markets that can be efficiently reached through their own operations.

Then it is to analyze and summarize the characteristics of market segments, which really requires specific industry analysis. Generally speaking, we can focus on the following dimensions:

Consumers (customers)/products or services/industrial chain location/market structure/growth

2. Industry (market) life cycle

Market life cycle is very important for industry analysis. Different stages have different market characteristics, and different markets will form their own unique life cycle. Generally, we summarize it into four periods: initial stage, growth stage, maturity stage and decline stage.

A core of the industry life cycle is: when the market is in the initial stage and the growth stage, it should be based on the incremental market; When the market is in maturity and recession, we should seize the stock market and look for transformation or new segmentation at the same time, so as to introduce the recession into a new growth period.

The industry is in different periods and faces different problems:

Entrepreneurial period: to solve the cognitive problems of users, focusing on communication.

Growth period: solve the problem of user transformation and focus on operation.

Maturity: solve the problem of user retention, focusing on brand building.

Recession: solving the problem of product transformation and innovation

Entering a recession does not mean that the industry is unattractive or will be replaced soon. Excellent products have the opportunity to revitalize the industry, and new segmentation can also re-create user needs.

3. Key factors of industry competition

Different industries have different competitive factors, which can be generally divided into: R&D, quality, price, marketing and service.

For example, in the running shoes market, R&D and quality are critical; Marketing is the main competition point of FMCG juice market; In industries at the top of the supply chain, prices are very sensitive; On the other hand, convenience stores attach importance to the services provided for a region.

Of course, the analysis of key competitive factors is not so easy. According to the previous analysis results of the industry, we should sum up the competitive factors that are suitable for the industry and have guiding significance.

Many people know that "Porter's Five Forces" is a competitive analysis method put forward by strategic master Michael Porter. Porter's five forces are a highly adaptable analysis method, and there are corresponding combinations in both strategy formulation and industry analysis. From the perspective of industry analysis and research, pay more attention to the attractiveness and competitive factors of the industry. These five forces are:

The threat of substitutes

The threat of new entrants

Supplier bargaining power

Purchasing bargaining power

Industry competition intensity

The above are some analysis summaries, which are very long, but they are actually just a framework. You can do it in depth, do an industry research in two hours, or complete a fundamental analysis in half an hour.

The purpose is different, the output is definitely different, mainly to form the concept and framework of their own industry analysis, and the key is to be able to output valuable conclusions. As said at the beginning: accurate results can give instructive conclusions.