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Business Plan Tutorial: Industry Structure

Industry Structure

1.    Structure- How are the other companies in this Industry set up?

  • How many companies are in this industry?
  • How big are they? Do they have resources to overtake you?
  • What are their Distribution Channels (e.g., horizontal, vertical)?
  • How do they transport their product?
  • What are the barriers to enter this market?
  • How is their Hierarchy set up?

Questions you should answer within your business plan:

  1. Description of the current industry
    1. How can you take advantage of the current industry trends?
    2. How much growth can you expect?
    3. Is this a market you want to go into?
  2. What ideas can you borrow from the competition?  (I.E. Supply chains, distribution channels, points of sales)
  3. What can you do that your competition can't?
  4. What can you improve upon (e.g., make more profitable, simplify, streamline, just-in-time, reduce waste)?

Industry Structure - UW Restricted

Industry Structure - Free Online

Chamber of Commerce as a resource, i.e. Bothell, Woodinville, and Ballard.  They have listings of all the Member Businesses.  Understand your competitor's location. 

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