# Industry Analysis - Industry = group of firms producing products/services that **meet the same customer needs** - Industry Analysis = a tool for understanding how **[[profit]]s** are distributed among market participants. - Reasons for analysis - Identify **opportunities** to increase profits - Understand **threats** to existing profits - Decide to **enter** a market - Decide to **exit** a market - Assess the impact of a major industry **change** - Opportunity to **shape** the industry environment - [[porter|Michael Porter's 5 + 1 Framework]]