Industry Analysis Team Report Instructions and Pay Guidelines

APPLIED STRATEGY INC.

Congratulations on your new assignment - it represents a significant opportunity for you as a
strategy analyst within the company! You and your team will be both challenged and rewarded for
your efforts as a result of your work on the chosen industry. Approach this assignment as one that
will define and showcase your abilities in you strategy program at ASI.
Purpose: Each team will have the same industry to analyze and report on. You will conduct an
industry analysis (also called a competitive analysis) of the industry, and as a team write a report with
your results. This report will require that you apply the concepts that you have learned in the course.
This team assignment will enable you to learn how to research and analyze the external and
competitive nature of an industry. It is necessary to have a thorough understanding of an industry
before a firm can develop strategic plans to obtain competitive advantages.
Basic Attributes of Your Report: The best reports are the result of a lot of research. There is a direct
correlation between research and grades. To earn the highest grade possible, your report should
demonstrate evidence of:
Significant secondary research. A good report will use at least 10 different sources, and no
one source for more than 10 percent of the citations.
Integration of course concepts.

Written in plain English and demonstrating understanding that clarifies and distills the
problems and opportunities competitors in the industry are facing.
Precise business writing skills. (You will be penalized for writing mistakes.)

The best reports also summarize what you have learned from your research. A great report
demonstrates that the student has thoroughly researched the industry, and demonstrates the ability to:
Comprehend Paraphrase or interpret the information in ones own words.

Analyze Break down the information gathered during your research into parts, and show
interrelationships.
Synthesize Bring together parts of knowledge from various sources to form the report.

Evaluate Make judgments based on the information researched.

Research Overview: Do not procrastinate! Start your research as soon as you have been given your
industry assignment. Begin by just learning as much about the industry as you can -- avoid trying to
fill in the information required for the report as long as you can. This may be frustrating for you as
there is a tendency to look for specific information for one section of your report during your
research, but you will rarely find such information in a single source.
Information you are seeking includes industry trends, past growth rates and future growth
projections, target market wants and needs. Also look for typical products/services offered by
competitors, client/customer demographic descriptions, pricing, location, promotional methods,
distribution methods, customer service reputation, quality track record, etc. Learn how industry
competitors operate.

Suggested Approach to Research: Here is how you might start your research:
1. Determine your NAICS code. This will increase the efficiency of your research. If you cannot
identify the NAICS code, then try using a SIC code instead.
2. Find magazine/journal articles or books about your type of business; print the articles to insure that
you have the source of the information. List the articles and books you researched and describe the
pertinent information you found that will be included in your report.
3. Use the Internet. There is a wide variety of Internet sources of information available to you as a
UCF student. The UCF Library has licenses for many databases and online information sources;
either access them from an on-campus computer lab, login through the UCF libraries home page, or
install the Pegasus CD on your home computer to access these sites for free.
Document Your Sources: As you conduct your research, carefully document the sources of the
information. We have a Zero Tolerance policy for plagiarism in this course. You MUST submit your
report to Turnitin.com, an online anti-plagiarism website.
Outline: Following is an outline of the types of issues you will want to address in your report. Be
sure to go beyond just describing the industry. Discuss the implications of your findings for firms
competing in your industry. Note that not all issues contained within each section will apply to every
industry. Choose the most pertinent issues and discuss them according to the applicability to your
assigned industry. However, there are certain sections that are required for all reports and are marked
as such, so please make sure to include them in your assignment.

Executive Summary and Introduction: (one page)

Research: This section includes two parts: the introduction and the executive summary. For the
introduction, find the NAICS or SIC codes first, then determine generic descriptions of the industry
and the general products that this industry produces. If you were studying steel production, you
would look up what steel production/manufacturing encompasses. No additional research is required
for the introduction.
Report: For the introduction part of this section, describe the purpose of the report and provide the
definition of the industry and its main activities and products. The executive summary part will be
written after you have completed your research. It should succinctly summarize what is in the report
including your findings and conclusion.

1. Industrys Dominant Economic Features (up to two pages)

Research: While you are getting familiar with this industry through your research, make note of
information related to any dominant economic features such as market size; scope of rivalry; growth
rate and what stage of the life cycle is the industry in; number of rivals and their relative size;
prevalence of forward/backwards integration; channels of distribution; pace of process and product
technology change; whether products are highly differentiated or very similar; to what extent are
economies of scale in purchasing, distribution, advertising, are important; to what extent do learning
curves exist; are high rates of capacity utilization important for profitability; what are the historical
levels of profitability; are there segments within the industry, and if so, what are they, and how do

their presence effect firms, strategies, competition, and levels of profitability within each segment?
Make sure to identify where the industry lies using the SCP framework discussed in lecture.
Report: Summarize what you have learned about the economic factors in the industry that have the
most impact on it. In addition, if your industry is not a main industry, it might be a sub-industry
within a main industry. For example, if you were studying steel production companies, the main
industry is called metals and mining; within metals and mining there are two sub-industries dealing
with steel, you would study steel production (also sometimes called steel manufacturing). Basically
describe the purpose of your industrywhat does it do, and what dominant economic features
influence it the most. Choose carefully what information belongs in this section of your report, and
what information should be included in one of the other five sections of the report. Make sure to
identify where the industry lies using the SCP framework discussed in lecture.

2. Porter's Five Forces (five pages for entire section)

See text and lecture notes for a discussion of Porters Five Forces.
Threat of Substitute Products (Include as a sub-heading)
Research: If you were studying steel production, you would look up information in your industry to
see if there are many substitutes for steel and steel production. If so, discuss what these are and how
they act as substitutes. If not, state that this is not an issue. For example, is plastic (a different
industry) a good substitute for steel? Dont forget to state the overall level of strength of this force for
your industry as high, medium, or low.
Intensity of Competitive Rivalry in the Industry (Include as a sub-heading.)
Research: Look up information in your industry to see if there is a lot of rivalry between and among
the companies currently in the industry and describe that here. Dont forget to state the overall level
of strength of this force for your industry as high, medium, or low. Be sure to discuss the relevant
criteria for this force.
Threat of New Entrants (Include as a sub-heading)
Research: If you were studying steel production, you would look up information in your industry to
see if there is a high likelihood for new firms to enter the steel production industry. Describe reasons
why there are or are not barriers to entry into this industry (e.g., is there a high capital
requirement to enter this industry, is it difficult to obtain the resources to produce steel, etc.). Dont
forget to state the overall level of strength of this force for your industry as high, medium, or low. Be
sure to discuss the relevant criteria for this force.
The Power of Buyers (Include as a sub-heading)
Research: If you were studying steel production, you would look up information in your industry to
see those people purchasing the steel that is produced have a high level of power over the steel
producers such that they can control the prices and terms of contracts. Dont forget to state the
overall level of strength of this force for your industry as high, medium, or low. Be sure to discuss
the relevant criteria for this force.

The Power of Suppliers (Include as a sub-heading)

Research: If you were studying steel production, you would look up information in your industry to
see if those supplying the steel manufacturers have a high level of power over the steel producers
such that there are no other suppliers, they can charge high prices, they can control the terms of
contracts, etc. Dont forget to state the overall level of strength of this force for your industry as high,
medium, or low. Be sure to discuss the relevant criteria for this force.
Summary of Forces and Attractiveness (Include as a sub-heading)
After you have gone through all five forces, summarize the collective attractiveness of the industry.
Report: Determine whether or not each individual force affects the attractiveness of the industry. The
best way to approach this section is to discuss how each of the forces impacts the attractiveness of
the industry in just one or two sentences per force. Be sure to include a summary of your analysis of
all of the key forces and what it means for the industry. Clearly state if your conclusion is that the
industry is attractive, or not attractive. Base this on the goal of a new entrant, or an incumbent, to be
able to achieve a position of competitive advantage. Note - if the industry is segmented, be sure to
include a brief discussion of that fact and how the forces might differ across the different segments.

3. Drivers for Change in the Broad Environment (up to two pages)

Research: Search for information such as: political, economic, sociocultural, technological,
environmental, legal, or other trends. The issues will vary by industry. Examples of issues that may
be addressed in this section include long term growth rate; who buys the product and how they use it;
significance of product innovation and technological change; marketing innovation; entry/exits of
major firms; diffusion of technological know-how; extent of globalization; changes in costs and
efficiencies; emerging buyer preferences (shift towards differentiation or commodity); regulatory
influences; changes in societal concerns, attitudes, or lifestyles; reductions in uncertainty and risk in
the industry over time.
Report: You do NOT need to discuss all factors in the general environment, only those relevant to the
industry under study. Thus, be sure to discuss ONLY the most relevant factors for your industry. The
most common general environmental factors include political, economic, socio-cultural,
technological, legal, and environmental forces. And of course, these may span international
boundaries. Simply discuss how the relevant trends in the general environment impact your industry.
A nice way to approach this section is to include cited examples of firms within the industry that
have had to adjust their business practices (or who have responded to the trend) as a consequence of
the trend. Be sure to also discuss the implications of the trends for the industry. As such, you will not
just state what the trend is, but you need to directly tie the trend to the implications that it will have
(or is having) on the industry. The text and CEO meeting lecture notes will help with all of these.

4. Companies in the Strongest/Weakest Positions (one and half pages)

Research: Identify a minimum of three individual companies in the industry. Identify a leading
company, a moderately successfully company, and a company that is struggling. Base your selection
primarily on each companys relative position based on their performance in the industry. Recall that
each industry measures performance in a unique way.
Report: In addition to their position based on their performance, identify how each firm has
positioned, or tried to position, themselves, in their industry. What strategies does each of these rivals

pursue? Identify characteristics that differentiate the companies from each other based on
quality/price, geographic coverage, vertical integration, product line breadth, distribution, or service.
Critical note: You are required to answer this question, using course concepts: What strategy does
each of these rivals pursue? The criteria that you should use to determine the strategic positions of
the firms are based on Porters generic strategies (e.g., low cost, differentiation, etc.). Specifically
state which strategy the firms use. Do some generic strategies seem to work better in the industry
than others? Are some firms more successful at executing the generic strategies then others? If so,
why (how do you know)? Other criteria that you can use to determine the strategic positions of the
firms include how the firms position their products on a number of criteria like quality and price. Do
some firms have high quality and highly priced products/services while others have adequate quality
and low priced products/services? Are some firms competing on a large geographic scale than others
(e.g., compete in more geographic marketsinternationally or in more domestic markets than
others)? Do some firms offer a broader product/service selection than others? Do some firms benefit
from first-mover advantages? Do some firms possess resources and capabilities that allow them to
gain a competitive advantage?

5. Key Success Factors For Competitive Success (KSFs) (one and a half pages)
Research: This section probably does not require additional research. Instead you should reflect back
on all that you have already learned about this industry. Before a team member starts writing this
section, make sure the input of all other members from their research for their sections is taken into
consideration. Analyze, synthesize, and evaluate what you have learned.
Report: Critical note: You are required to answer all of these questions.
What are the 3-4 key industry issues/factors that have the strongest relationship with success
and profitability?
Do these KSFs vary by segment?
How are these KSFs likely to vary over time?

6. Create an Industry Strategic Group Map (one page)

Maps are typically constructed in two dimensions, and in advanced analysis may be constructed
in three dimensions. This guideline focuses on the two dimensional version. The horizontal axis
is the X-axis, and the vertical axis the Y-axis. Separate measures for both axes are chosen.
Ideally, the chosen measures for the axes should not be strongly correlated with each other. If one
measure is strongly correlated with the other, then the map is essentially based on just one
measure. If the two measures are weakly correlated or not correlated, then the map displays a
firms position on two measures. The latter is a much more useful analysis tool. Firms are located
on the map based on their performance along each axes. The location of the firms must be
precise and objectively determined this is not a qualitative or subjective process (Porter, EDC
Director). The third variable (size of the bubble) reveals the key important metric that is used to
measure competitive advantage in the chosen industry. Use SBU Manager Connells guidelines
and the PowerPoints/whitepaper provided in Canvas.

Once the map has been created, insert the image in your report and clearly discuss why the
variables were chosen and their significance to the players in the industry. Whats the Aha
moment? What does this map reveal?

7. Analysis - Industrys Prospects for Long-Term Profitability (one and a half

pages)
Research: No additional research should be needed to complete this section. Write it last so that you
can use the information from the previously-written sections. Thus, you should use all of your
analyses to determine the prospects for long-term profitability. For example, you should identify the
prospects for long-term profitability based on what youve already learned. You might even find
some forecasts in your research that might help to support your assertions regarding the industrys
prospects.
Report: Critical note: You are required to discuss all of these issues:
Future growth potential?
Will competitive forces get stronger?
Will driving forces increase/decrease profitability?
Which companys strategic position will improve/decline?
How can firms insulate themselves from the unattractive forces in the industry?
Is this an attractive industry in which to participate?
Appendix
Bibliography or Works Cited, listed alphabetically by authors last name or source when
authors name is not available. Make sure in-text citation uses the same label, either authors
last name or source.
Any other related documents, in the order in which they are mentioned in your report.
Report Format
The report must be double-spaced.
Use 12-point Times New Roman font only.
Provide 1-inch margins on all sides.
Write in paragraphs using dialog. Avoid using bullets unless you include short lists of similar
issues.
It will take about 16 pages of text to do a thorough job on this analysis.
You can provide appendices (charts, graphs, etc.), but these should not be considered part of
the 16 page maximum of text. Make sure to include references in the body of your report to
information provided in the appendices clarifying how it fits in your report. Put items in the
Appendix in the same order they are discussed in the report. Citation requirements apply to
information in the appendices as well.
Use headings for each of the six main sections of the report, and number each page. Use subheading when appropriate, such as for Porters Five Forces.
Do not include a table of contents.

Reports must follow APA or MLA citation guidelines (including in-text citations). The
citation style should be consistent throughout the report.
Staple your report in the upper left-hand corner. Do not use a binder, notebook, folder, etc.
You will not receive extra points for packaging your report beyond the basics outlined
here. You will likely need to use a heavy duty stapler for this. Multiple attempts with a
typical stapler will be ineffective, create an unprofessional appearance, and result in pages
getting lost. You may lose points for this, so plan ahead to staple your report with a heavy
duty stapler.
Include the attached / filled-in Industry Analysis grading rubric with your team name
and all team members names clearly printed to prevent a loss of five points.

Cautions!
Failure to properly cite your sources will be assumed to be plagiarism and will result in a
zero, or no pay, on the assignment.
Writing skills count. Review the Business Writers Companion or the Cornerstone Writing
Handbook to insure your writing skills meet requirements. Your writing skills must be
precise and professional. Proof read your report (and ask another person to proof read your
report) to insure there are no problems with your writing skills. You could lose three points
for each error.
Once the content of your report is assessed and graded, additional points will be deducted if
you have failed to follow these instructions or if your writing skills are not exemplary.
Your report will be graded from the perspective of an executive (your employer) reviewing a
report, not just as an instructor reviewing a students report. It must be professional in all
respects.
A late report/presentation will receive a ten percent penalty and an additional 10% penalty
for every 24 hour period it is late (including weekends and holidays).
Compare your content and format with these instructions. You will lose points if you have
not followed directions.

Industry Analysis Report Payroll Rubric

Applied Strategy Incorporated
Leaders Name: ______________________
Industry _______________________
Section/Day: ________

Team Name: ______________________

Team members*:
_____________________________________________________________________________
*List team members in order of alphabetized last name, A-Z
Section
Possible
Points
Executive Summary and Introduction.
5
1. The Industry's Dominant Economic Features.
Examples: Discuss only the issues that are most important to your industry.
Market size, growth rate, industrys stage in the life cycle, number of buyers and
their size, prevalence of forward/backwards integration, channels of distribution,
pace of process and product technology change, differentiation or similarity of
products, extent/importance of economies of scale in purchasing, distribution,
advertising, extent that learning curves exist, importance of high rates of capacity
utilization for profitability, and historical levels of profitability. Segmentation
within the industry: if yes, what are they, and how does their presence affect firms,
strategies, competition, and levels of profitability within each segment?
Use the SCP model to identify where the industry stands.
SBU Manager Feedback:

2. Porter's Five/Six Forces; You must identify all Five/Six Forces but
concentrate on the key forces.

Threat of Potential New Entrants

Competitive Rivalry in the Industry
Bargaining Power of Buyers specifically, who are the buyers of the
products your industry sells?
Bargaining Power of Suppliers - specifically, who are the suppliers to your
industry?
Threat of Substitute Products from other Industries
Complements (if needed)
Summarize this section: is the industry attractive or unattractive?
SBU Manger Feedback:

10

40

Your
Points

3. The Drivers of Change in the Broad Environment & Impact They Will
Have.
Examples: Discuss only the issues that are most important to your industry.
Long term growth rate, buyer profile and how they use it, product innovation &
technological change, marketing innovation, entry/exits of major firms, diffusion of
technological knowhow, globalization, changes in costs and efficiencies, emerging
buyer preferences (shift towards differentiation or commodity), regulatory
influences, changes in societal concerns, attitudes, lifestyles, and reductions in
uncertainty and risk in the industry over time. PESTEL is a good tool to use for this
section. SBU Manager Feedback:

10

4. Companies in the Strongest/Weakest Positions. You are required to

identify their current strategies, then compare and contrast their
current strategies.
Address any of these issues that are very important to your industry: Identify at
least three different firms (or types of firms) in your industry and discuss how each
has positioned, or tried to position, themselves, in their industry. Are there positions
in the industry that are more attractive than others? Identify characteristics that
differentiate, such as quality/price, geographic coverage, vertical integration,
product line breadth, distribution, or service. SBU Manager Feedback:

10

5. Key Success Factors for Competitive Success. Must Discuss All Four
Issues:

List & describe 3-4 key issues/factors that have the strongest relationship
with success and profitability
Do these KSFs vary by segment?
How are these KSFs likely to vary over time?
SBU Manager Feedback:

6. Construct a Strategic Group Map

Your map should clearly reveal the competitive positions of the firms which
compete as rivals in a given segment of the industry. It should support your
industry analysis. Your axes should be clearly identified use descriptive
labels that fully explain the variable.
SBU Manager Feedback:

10

7. Analysis and Summary: Industrys Attractiveness and Prospects for

Long-Term Profitability. Must Discuss All of These Issues:

Growth potential?
Will competitive forces strengthen?
Will driving forces increase/decrease profitability?
Which companys strategic position will improve/decline?
How can firms insulate themselves from the unattractive forces in the
industry?
Is this an attractive industry in which to participate?
SBU Manager Feedback:

10

Points deducted for failure to follow instructions or for poor writing skills.
SBU Manager Feedback:

Total Points

100