Industry analysis is the process of examining the various factors that influence a specific industry. This includes understanding market trends, competitive dynamics, and economic conditions. Analysts often use tools like Porter's Five Forces to assess the competitive landscape and identify opportunities and threats within the industry. By conducting an industry analysis, businesses can make informed decisions about entering new markets, investing in innovation, or adjusting their strategies. This analysis helps organizations understand their position relative to competitors and anticipate changes in consumer behavior, ultimately guiding them toward sustainable growth and profitability.