1. ( An IACBE Accredited Institution ) Industry Analytics Post Graduate Programme (2010 – 12) 3rd Term Alliance Business School Bangalore

2. 10/2/2015PGP, Alliance Business School2 Overview of Industry Analytics

3. 10/2/2015PGP, Alliance Business School3 What is Industry Analytics? Industry analytics is a course of study designed to provide the student with a comprehensive understanding of industry or sector: Global and Indian. It imparts knowledge and expertise about industry or sector to students. Each student group will identify and select ONE industry or sector from the manufacturing / service sector in India.

4. 10/2/2015PGP, Alliance Business School4 Objectives of the Course After completion of this course, you should be able: o To analysis the Indian economy and its various sectors. o To provide a comprehensive and focused insight within the sector. o To acquire skills in analyzing the situation and making broad decisions about industry. o To understand how industry structure drives competition, which determines the level of industry profitability. o To assess industry attractiveness (future profit potential). o To use evidence on changes in industry structure to forecast future profitability. o To formulate strategies to change industry structure to improve industry profitability. o To identify Key Success Factors. The course is aimed at preparing the students on one industry or sector through useful methodologies and knowledge of data, their location, and use of databases. 1.1

5. Analysis of demand Who are our customers? Who are our customers? What do they want? What do they want? Analysis of competition What drives competition? What drives competition? What are the main dimensions What are the main dimensions of competition? of competition? How intense is competition?How intense is competition? How to obtain a superior competitive position?How to obtain a superior competitive position? What do customers want? How does the firm survive competition Pre-requisites for success Identifying Key Success Factors KEY SUCCESS FACTORS

6. SUPPLIERS POTENTIAL ENTRANTS SUBSTITUTES BUYERS INDUSTRY COMPETITORS Rivalry Among Existing Firms Bargaining power of suppliers Bargaining power of buyers Threat of new entrants Threat of substitutes Porter’s Five Forces of Competition Framework

7. THREAT OF ENTRY Capital requirements Economies of scale Absolute cost advantage Product differentiation Access to distribution channels Legal/ regulatory barriers Retaliation SUBSTITUTE COMPETITION Buyers’ propensity to substitute Relative prices & performance of substitutes SUPPLIER POWER Uniqueness of service Ability to substitute INDUSTRY RIVALRY Concentration Diversity of competitors Product differentiation Excess capacity & exit barriers Cost conditions BUYER POWER Buyers’ price sensitivity Relative bargaining power The Structural Determinants of Competition

8. Macro and Micro Economic Analysis Global Economy Domestic Economy Economy Sector Industry Sector Company

9. Chapterisation Scheme  Introduction & Literature Review  Global Scenario  Country Review  Industry Review  Analytical Framework  Company Review  Industry Outlook – Future Prospects 10/2/20159PGP, Alliance Business School

10. Chapter 1: Introduction & Literature Review Introduction of the study – need for the study – importance of the study – methodology – data sources. Review of existing literature available for the industry/ sector. 10/2/201510PGP, Alliance Business School

11. Chapter 2: Global Scenario The selection of the industry sector will be first studied from a global perspective. For example, global cement industry; global banking industry, global automobile industry. Manufacturing sector: industry sector Services sector: industry sector 10/2/201511PGP, Alliance Business School

12. Manufacturing Sector Global Market Structure: Growth pattern Global Players Global Products Global Technology Global Investments Producers/Production Consumption Sales Exports Pricing Demand and Supply Productivity 10/2/201512PGP, Alliance Business School

13. Services Sector Global market structure: Growth pattern Global players Global trends Global products Global Human Capital 10/2/201513PGP, Alliance Business School

14. Chapter 3: Country Review Industry Structure: Organized Sector Contribution to GDP Economic importance: capacity utilization Employment, gross value added (I/O), employment Fixed investment (www.mospi.nic.in, I/O tables CSO) Capacity expansion Corporate Taxation Technology process Exports and imports CapitalLinePlus, ASI, Planning Commission statistics. 10/2/201514PGP, Alliance Business School

15. Chapter 3: Country Review (Service sector) Sector overview Service Tax Act 1996 Regulations and Government Approvals Contribution to GDP Employment Technology Corporate Taxation Trends Consolidation FDI 10/2/201515PGP, Alliance Business School

16. Chapter 4: Analytical Framework 1. Technical Analysis: R&D investment, technology processes, upgradation. 2. Commercial Analysis: Cost structure analysis, Pricing analysis. 3. Industry Analysis: Porter’s Five Forces Analysis, SWOT Analysis, 5 Key Ratio Analysis (Debt-equity Ratios, Current Ratios, Turn over Ratios, Profitability Ratios). 10/2/201516PGP, Alliance Business School

17. Chapter 5: Company Analysis Top Five Companies of the sector Bottom Five Companies of the sector Company details: historical background, equity, profits and losses, sales, assets, turnover, profitability analysis. Year-on-Year performance analysis based on: - ratio analysis (five key ratios) - comparisons with the industry average ratios - inter-company comparison 10/2/201517PGP, Alliance Business School

18. Chapter 6: Industry Outlook Outlook for the Year 2010. 1.Prospects: government policies regulating the industry and Central Budget 2009 highlights and analysis 2.Projections: Trends – sales, production, employment, capital and financing, profits and losses, investments; Policy environment: growth-oriented, dampener 3.Challenges: competition, imports, technology, growth of consumer and industrial market segments 10/2/201518PGP, Alliance Business School

19. Industries can be considered 1.Steel 2.Automobile 3.Cement 4.Information Technology 5.Sugar 6.Textile 7.Power 8.Telecom 9.Aviation 10.Paper 10/2/2015PGP, Alliance Business School19 11.Banking (Public) 12.Banking (Private) 13.Paint 14.Pharmaceutical 15.Retailing 16.Refinery 17.Aluminium 18.Hotel 19.Biotechnology 20.Hospital

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