4. Industrial sectors and market


4.1   Analysis of industrial sectors and market

Overview to which industrial sector the company will belong with a view which major factors can have an influence on this sector in the future. Description of status-quo and - based on this - the expected trends. Describe by what the industrial sector can be influenced, e.g. by technological developments, legal or political changes, raw material availability and how these changes may affect the product.The following questions need to be answered:

  • Dynamics of development for the respective industrial sector
  • Role of innovation and technological progress
  • Actual trend in this sector (upward, stagnating, downward)
  • Which economical developments have an effect on the respective industrial sector?
  • Influence of legislation and government administration on the respective industrial sector.
  • What influences the economical growth in the respective industrial sector?
  • How fares the competition? Which strategies do the competitors follow?
  • Possible obstacles which may arise when entering the market and ways to overcome them.
  • Profits which are usually achieved in this industrial sector


4.2   Market segments and target customers

Please answer the following questions:

  • How will the market be split up ( geographically, industrial sectors )?
  • Target groups
  • Examples of typical customers
  • Expected sales, turnover and profit for the first 5 years
  • Specific share of sales for the different market segments, now and in future
  • Expected market share, presently and in future
  • Expected profit for the different market segments, now and in future
  • Expected turnover potential of important customers, now and in future
  • How many customers are expected now and in future?
  • On which facts and assumptions are based your aforementioned statements?
  • Present reference customers
  • Influence in purchase decisions of customers
  • Role of sales department and customer service for such purchase decisions
  • The new company will depend to what extent on big customers?


4.3   Competition

Please answer the following questions:

  • Which important competitors offer similar, equivalent products?
  • Which new developments can be expected from these competitors?
  • Who of the competition might be able to use the same business idea?
  • Which market segments are served by the competition?
  • Which market share have got your competitors in the different market segments?
  • How successful and/or profitable are and will be your competitors?
  • What possible strategies may the competitors pursue now and in future?
  • What sales channels are used by the competitors?
  • Comparison of competitors strength and weakness with own company (consider product development, product quality, price, sales, marketing, location)
  • How strong will be own advantage over the competition?
  • Reaction of competitors on improvements of your products and your efficiency.
  • What possible answers do you have on competitor reaction?