• In the Industry Analysis, generally the things like, the results of implications of plan priorities and plan expenditure for various industries, implications of projected growth in gross national product for various industries and implications of industrial and fiscal policies of the government for an industry are discussed. In the industry analysis, macro economic elements like overall industry input and output analysis will be conducted.
    • Industry life cycle displaces how the industries evolved. Generally industries have been evolving through four stages - the pioneering stage, the expansion stage, the stabilization stage and the declining stage. There is an obvious parallel in this idea to human development. The concept of an industry life cycle could apply to industries or product lines within industries.
    • The five competitive forces - entry, threat of substitution, bargaining power of buyers, bargaining power of suppliers, and rivalry among current competitors - reflect the fact that competition in an industry goes well beyond the established players.
    • The competitive environment include the relative positioning of the firm within its industry. If the performance of the company is above or below average, if a company positions itself well, then it may earn high rates of return even if industry's returns are moderate. A well-articulated and implemented competitive strategy enables the firm to function profitably and earn high returns even if the industry structure is unfavorable and the average profitability of the industry is moderate.
    • Valuation of stock has also been discussed in this textbook. If the present value of the shares of the company is greater than the index value, It indicates that the industry's weigh in the index should be increased. If the present value is less than the index value, then the composition of the industry in the index should be decreased.