INDUSTRY ANALYSIS – OVERVIEW I What is Industry Analysis? Industry analysis is a market assessment tool used by businesses and analysts to understand the competitive dynamics of an industry It helps them get a sense of what is happening in an industry, i.e., demand-supply statistics, degree of competition within the industry, state of competition of the industry with other emerging industries, future prospects of the industry taking into account technological changes, credit system within the industry, and the influence of external factors on the industry Industry analysis, for an entrepreneur or a company, is a method that helps it to understand its position relative to other participants in the industry It helps them to identify both the opportunities and threats coming their way and gives them a strong idea of the present and future scenario of the industry The key to surviving in this ever-changing business environment is to understand the differences between yourself and your competitors in the industry and using it to your full advantage II Types of industry analysis There are three commonly used and important methods of performing industry analysis The two methods are: Competitive Forces Model (Porter’s Forces) Broad Factors Analysis (PEST++ Analysis) #1 Competitive Forces Model (Porter’s Forces) One of the most famous models ever developed for industry analysis, famously known as Porter’s Forces, was introduced by Michael Porter in his 1980 book “Competitive Strategy: Techniques for Analyzing Industries and Competitors.” According to Porter, analysis of the five forces gives an accurate impression of the industry and makes analysis easier a Intensity of industry rivalry The number of participants in the industry and their respective market shares are a direct representation of the competitiveness of the industry These are directly affected by all the factors mentioned above Lack of differentiation in products tends to add to the intensity of competition High exit costs like high fixed assets, government restrictions, labor unions, etc also make the competitors fight the battle a little harder b Threat of potential entrants This indicates the ease with which new firms can enter the market of a particular industry If it is easy to enter an industry, companies face the constant risk of new competitors If the entry is difficult, whichever company enjoys little competitive advantage reaps the benefits for a longer period Also, under difficult entry circumstances, companies face a constant set of competitors c Bargaining power of suppliers This refers to the bargaining power of suppliers If the industry relies on a small number of suppliers, they enjoy a considerable amount of bargaining power This can affect small businesses because it directly influences the quality and the price of the final product d Bargaining power of buyers The complete opposite happens when the bargaining power lies with the customers If consumers/buyers enjoy market power, they are in a position to negotiate lower prices, better quality, or additional services and discounts This is the case in an industry with more competitors but with a single buyer constituting a large share of the industry’s sales e Threat of substitute goods/services The industry is always competing with another industry in producing a similar substitute product Hence, all firms in an industry have potential competitors from other industries This takes a toll on their profitability because they are unable to charge exorbitant prices Substitutes can take two forms – products with the same function/quality but lesser price, or products of the same price but of better quality or providing more utility #2 Broad Factors Analysis (PEST++ Analysis) Broad Factors Analysis, also commonly called the PEST Analysis stands for Political, Economic, Social and Technological PEST analysis is a useful framework for analyzing the external environment To use PEST++ as a form of industry analysis, an analyst will analyze each of the components of the model These components include: a Political Political factors that impact an industry include specific policies and regulations related to things like taxes, environmental regulation, tariffs, trade policies, labor laws, ease of doing business, and the overall political stability b Economic The economic forces that have an impact include inflation, exchange rates (FX), interest rates, GDP growth rates, conditions in the capital markets (ability to access capital), etc c Social The social impact on an industry refers to trends among people and includes things such as population growth, demographics (age, gender, etc), and trends in behavior such as health, fashion, and social movements d Technological The technological aspect of PEST analysis incorporates factors such as advancements and developments that change the way a business operates and the ways in which people live their lives (i.e advent of the internet) GROUP ASSIGNMENT: GUIDELINES During the course, students will have to participate in completing a practical research exercise on a specific business This exercise will be conducted in groups, after finishing the related theoretical sessions, each group will have to submit an industry analysis report and to make a presentation in class #1 Requirements: - Get an overview of the industry - Analyze opportunities and challenges for businesses in the industry - Identify key success factors for businesses operating in the industry #2 How to proceed: - Students who form groups will choose a specific industry for study and register with the instructor - The groups will collect information for analysis (according to the course’s timeline) - Regularly report the progress to the instructor, follow the specific instructions according to the progress of each group - Analysis and report writing #3 Form of report - A written report of about 15 typed pages (not including annexes) - A brief presentation within 10 minutes (using presentation facilities) #4 Outline group exercise report: - Report’s name: External Analysis of Industry - Report’s contents: I General introduction - General introduction about the industry (a brief history of the industry, description of products / services, general trends in the supply and demand of the industry, etc.) II Macro environment analysis - Analysis of general factors affecting the future of the industry (economic, political-legal, cultural - social, technological, natural, international factors, etc.) III Industry environment analysis - Analysis by factors of the industry environment (using the M Porter’s forces model) IV Key Success Factors of the industry - Conclusion on key success factors of the industry Hanoi 01/07/2020 Assoc Prf Bui Duc Tuan Political-legal: Căn vào TCVN 10585:2014; Thông tư số 28/2012/TT-BKHCN Thông tư 02/2017/TTBKHCN; Luật Tiêu chuẩn Quy chuẩn kỹ thuật; Nghị định số 127/2007/NĐ-CP Pháp luật Việt Nam có quy định tiêu chuẩn sản xuất băng vệ sinh doanh nghiệp Theo điều 44 luật tiêu chuẩn quy chuẩn:“Chứng nhận hợp chuẩn thực theo thỏa thuận tổ chức, cá nhân có nhu cầu chứng nhận với tổ chức chứng nhận phù hợp quy định Điều 50 Luật này” Chính vậy, Chứng nhận hợp chuẩn Băng vệ sinh phụ nữ theo TCVN 10585:2014 nguyên tắc hoạt động tự nguyện, nhiên số trường hợp theo yêu cầu khách hàng trở thành bắt buộc Chứng nhận hợp chuẩn Băng vệ sinh phụ nữ theo TCVN 10585:2014 minh chứng cho chất lượng, lực nhà sản xuất; Nâng cao uy tín tạo lịng tin khách hàng sản phẩm, giúp cho nhà sản xuất dễ dàng việc mở rộng thị trường Có hội xem xét lại hệ thống kiểm soát chất lượng sản phẩm giúp ổn định chất lượng, giảm sản phẩm bị lỗi nâng cao suất thơng qua hoạt động cải tiến liên tục Ngồi để đảm bảo an toàn chất lượng sản phẩm ổn đinh đưa vào sử dụng, đa phần khách hàng yêu cầu đơn vị sản xuất phải có bên thứ xác nhận chất lượng sản phẩm trước tham gia đấu thầu Đối với cơng ty nhập băng vệ sinh pháp luật quy định việc nhập băng vệ sinh: quy định quản lý nhà nước băng vệ sinh; thủ tục nhập băng vệ sinh, thuế nhập băng vệ sinh, quy trình nhập Băng vệ sinh có HS thuộc chương 96: Các mặt hàng khác Việc xác định chi tiết mã HS mặt hàng phải vào tính chất, thành phần cấu tạo… hàng hóa thực tế nhập Theo quy định hành, để áp mã HS vào hàng hóa thực tế nhập thời điểm nhập khẩu, sở catalogue, tài liệu kỹ thuật (nếu có) hoặc/và giám định Cục Kiểm định hải quan Kết kiểm tra thực tế hải quan kết Cục Kiểm định hải quan xác định sở pháp lý để áp mã hàng hóa nhập Theo quy định hành, băng vệ sinh không thuộc danh mục hàng hóa cấm xuất khẩu, cấm nhập khẩu, vậy, cơng ty làm thủ tục nhập hàng hóa theo quy định Hàng hóa nhập cần có đầy đủ nhãn mác theo quy định hành Khi nhập băng vệ sinh, người nhập cần nộp thuế nhập thuế giá trị gia tăng (VAT) Thuế VAT băng vệ sinh 10% Thuế suất thuế nhập ưu đãi băng vệ sinh hành 15% Trong trường hợp băng vệ sinh nhập từ nước có hiệp định thương mại tự với Việt Nam hưởng thuế nhập ưu đãi đặc biệt Chi phí vận chuyển thời gian nhập có quan hệ mật thiết với Tùy tính chất hàng hóa mức độ u cầu hàng hóa nhập quốc tế vận chuyển theo đường biển, đường hàng khơng, đường bộ, đường chuyển phát nhanh Mỗi lô hàng cần xem xét cụ thể để đưa định phù hợp