How to analyse an sector of an industry - Girish VS

These are the questions you must answer when you want to analyse a sector. This set of questions provided to me by Prof. Girish VS.


1. Provide a general sector overview – include the business history of the sector –

How the sector evolved - in India and globally.

2. Contribution to GDP – Compare figures across India, US, China, Japan, UK,

Germany, Brazil, Russia for the past seven years.

3. The current state of the sector and prospects - Growth in the past and the growth

expected over the next 4 years

4. Size of the sector and what propels the growth of the sector including planned

expansions and new projects

5. What are the risks or threats to the sector performance? How are they being

addressed in India? What provides the sector with resilience?

6. The typical departments and divisions in a firm in the sector (A typical

organizational structure)

7. Analyze the operational processes and compare with global peers

8. Where are the customers located – see if you can get a break up.

9. The marketing aspects for the sector – how players organize their marketing

function

10. Analyze the economic factors affecting the sector. Show how they affect the

sector in India? Include Demand -Supply outlook for the sector and the

Cyclicality in the Sector

11. Do a PEST analysis, SWOT Analysis, and Five forces analysis for the sector.

12. Define the Market Opportunity and Global competitiveness

13. What are the regulatory constraints and impediments and the Government policies

that affect the sector?

14. What are the key Opportunities for the Sector?

15. What is the level of competition faced by the sector?

16. What is the contribution of other sectors to the growth or decline of the chosen

sector?

17. What are the HR challenges and the requirement of skilled personnel for the

sector? How do skills upgrading happen? Analyze the employment opportunities

in the sector.

18. Analyze the customer behavior wrt to the sector – what do they look for, what are

the issues and what influences the customers banking behavior?

19. Who are the major players (top 3) operating in the business, including their

revenue models, operational & financial aspects, expansion plans – compare with

global top 3

20. Analyze the profitability of the sector in India and compare with global peers.

What affects the profitability of the sector?

21. What are the typical costs (capital & operational) and margins, and comparison

with global counterparts

22. Analysis of player strategies and actions in the past and its impact on the growth

and profitability