An industry analysis is a comprehensive review of the structural underpinnings of an industry. This analysis is usually conducted as part of a competitive review of an industry, or as part of a decision to invest in an industry. Topics that may be included in an industry analysis are:
Performance and liquidity ratios
Cyclicality or seasonality trends
Total market size and individual shares of the market
The intensity of competition between market participants
An outcome of this analysis is a perception of the relative attractiveness of an industry; that is, can a business carve out a niche and hold it for an extended period of time, while generating reasonable profits?