# Industry Analysis Framework Reference

## 1. PESTEL — Macro-Environment Analysis

Analyze the industry's external macro-environment across six dimensions:

| Dimension | Analysis Points |
|-----------|----------------|
| **P Political** | Policy direction, regulatory intensity, tax policy, trade barriers, government stability |
| **E Economic** | GDP growth rate, interest rates, inflation, exchange rates, household income, employment rate |
| **S Social** | Demographics, consumption habits, cultural trends, education level, health awareness |
| **T Technological** | Technology maturity, R&D investment, patent trends, technology substitution risks |
| **E Environmental** | Environmental regulations, carbon emission policies, sustainability pressures, resource constraints |
| **L Legal** | Industry access, IP protection, labor law, antitrust, data compliance |

Output: Label each dimension "Favorable/Neutral/Unfavorable" and provide key impact assessment.

## 2. Porter's Five Forces — Competitive Structure Analysis

| Force | Analysis Points | Intensity Criteria |
|-------|----------------|-------------------|
| **Existing Rivals** | Number of competitors, concentration, differentiation, exit barriers | Many/homogeneous/high exit barriers → Strong |
| **Potential Entrants** | Economies of scale, capital requirements, channel barriers, policy barriers | Low barriers → Strong threat |
| **Substitutes** | Price-performance ratio, switching costs, substitution trends | High value/low switching costs → Strong |
| **Supplier Power** | Supplier concentration, switching costs, forward integration | Concentrated/irreplaceable → Strong |
| **Buyer Power** | Buyer concentration, price sensitivity, backward integration | Concentrated/low switching costs → Strong |

Output: Five forces intensity summary + industry profitability assessment.

## 3. SCP — Structure-Conduct-Performance

```
Market Structure → Firm Conduct → Market Performance
        ↑               ↑               ↑
        └── Basic Conditions (Supply-Demand, Technology, Policy) ──┘
```

| Component | Analysis Content |
|-----------|-----------------|
| **Structure** | Concentration, product differentiation, entry barriers, vertical integration |
| **Conduct** | Pricing strategy, capacity decisions, R&D investment, M&A, advertising |
| **Performance** | Profit margins, efficiency, innovation output, consumer welfare |

Output: Industry efficiency evaluation + structural issue identification.

## 4. SWOT — Comprehensive Assessment

|         | Internal | External |
|---------|----------|----------|
| **Positive** | S Strengths | O Opportunities |
| **Negative** | W Weaknesses | T Threats |

Output: Cross-strategies (SO / WO / ST / WT).

## 5. Supply-Demand Analysis

- **Demand Side**: Demand scale, growth drivers, price elasticity, substitution effects, seasonality
- **Supply Side**: Capacity scale, capacity utilization, supply elasticity, inventory levels, expansion cycles
- **Supply-Demand Balance**: Current gap direction, price trends, inventory cycle position

## 6. Cycle Assessment

| Cycle Type | Stage Phases | Assessment Indicators |
|-----------|-------------|----------------------|
| **Industry Lifecycle** | Introduction → Growth → Maturity → Decline | Growth rate inflection, penetration rate, standardization level |
| **Economic Cycle** | Recovery → Boom → Recession → Depression | PMI, GDP growth rate, credit cycle |
| **Inventory Cycle** | Active destocking → Passive destocking → Active restocking → Passive restocking | Inventory/sales ratio, PPI |

## Framework Combination Recommendations

| Research Purpose | Recommended Framework Combination |
|-----------------|----------------------------------|
| Investment Decision | PESTEL + Porter's Five Forces + Supply-Demand Analysis + Cycle Assessment |
| Market Entry | PESTEL + Porter's Five Forces + SWOT |
| Competitive Analysis | Porter's Five Forces + SCP |
| Strategic Planning | PESTEL + SWOT + Cycle Assessment |
| Quick Scan | SWOT + Supply-Demand Analysis |