Answered By: Susan Van Alstyne Last Updated: Apr 09, 2018 Views: 385
An industry analysis examines the “financial health” and state of a particular industry. It differs from a company analysis in that it takes a much broader view of the situation. Do not confuse the two. An industry may not be doing well, but a particular company within that industry may be. Or the opposite could be true, or a company could be in alignment with industry trends.
Industries in the United States are associated with code numbers:
- NAICS - North American Industry Classification System (NAICS) Industry OR Standard Industrial Classification (SIC)
- The numbers can be found in Mergent Online database, after you have conducted a search on a company.
- These numbers can be helpful when searching for industry reports in other databases. But remember, that there are global or foreign companies too.
Suggested Databases to use:
- Business Insight: Global: Note the “Industries” tab at the top of the page.
- IBISWorld: Search by keyword, company or code. Or browse by industry.
- Plunkett Research, Ltd. – Browse the “Industry Research Center” and explore the other options.
- Mergent Online - If you search by industry code, you can get a list of companies that fall within that industry. Researching these companies may help you to get a broader picture of the industry.
Something to be aware of:
One company can be involved in more than one industry, or even several; they may manufacture items that fall under different industry codes.
For example, Samsung Electronics Co. Ltd. is listed as a “major player” in both these Global reports in IBIS database:
1) Global Semiconductor & Electronic Parts Manufacturing - IBIS World Industry Report C2524-GL
2) Global Consumer Electronics Manufacturing - IBIS World Industry Report C2525-GL
Or a company may own two different kinds of chain-stores – each kind of store may fall under a different industry code.
For example, in IBIS database Walmart Stores, Inc. is listed as a “major player” under two NAICS codes, each with a very different market share of the particular industry.
- Warehouse Clubs and Supercenters in the U.S./45291
- Department Stores in the U.S/45211
Remember, that you can augment the industry reports that you find in the databases with your own searches on specific aspects of an industry.