Conducting Industry Research

As you develop your business plan, you will need to learn more about the industry in which you want to open your business.  An industry refers to a group of establishments (businesses) that produce similar products and services.

Knowing your industry helps you identify industry trends and understand your competition. Begin your investigation with broad resources such as industry overviews and forecasts, then refine your analysis with articles, market research, association data and current statistics.

Keep in mind the fact that equal amounts of information are not available for all industries. It can vary widely by industry depending on the size, age, and rate of technological change within an industry.

Use the following steps to find information about the industry you selected:

• Step 1: Identify Your Industry
• Step 2: Industry Overviews
• Step 3: Find Articles About Your Industry

Step 1: Identify Your Industry

It is important early in the research process to identify industry classification codes for your chosen industry because information about companies and industries is organized around those codes.  Business information is published using North American Industry Classification System (NAICS) codes and/or Standard Industrial Classification (SIC) codes.

The SIC System groups businesses by the type of activity, whereas NAICS groups businesses according to similar production processes.  These codes will assist you in finding major establishments in your industry field, where they are located, and what the trends are for that industry. 

These codes also make it easy to locate and compare data about your industry.  You will most likely need both sets of codes.  Although government data has been using NAICS since 1997, some publishers of business information still use SIC codes.

• Find your industry's NAICS code
  
• Find your industry's SIC code

NOTE: Establishments can operate in more than one category, especially when they provide a variety of goods and services.  You may find a primary code with a number of secondary codes in connection with one business.

You may also see discrepancies among primary and secondary codes, depending on the publisher.  A SIC or NAICS code that an establishment might choose, or otherwise appear on an economic census form, may be entirely different from what a publisher of business information may have selected to identify that business.

Step 2: Find Industry Overviews

Now that you have found the SIC code and NAICS code for your industry, use them to track down industry reports and articles in online research databases and encyclopedias.

Industry profiles provide an overview of an industry -- products/services available, some history, size of the industry, and outlook for the next few years. They also report on current conditions, trends and projections.

Use Business Source Complete [on-campus | off-campus], a library research database, to locate industry overviews.  If you are accessing databases from a location other than a Tri-C campus, use the "off-campus" link.  Click on the following image to enlarge it, or view the video below.

You should also try the following online encyclopedias provided by Tri-C Library.  Search with either the SIC or NAICS code:

• Encyclopedia of American Industries
• Encyclopedia of Emerging Industries
• Encyclopedia of Global Industries

Other business databases to which Tri-C library subscribes are located on our Business subject guide.

Continue on to Step 3 to find articles about your industry.

Step 3: Find Articles about Your Industry

Articles published in business magazines, trade journals and newspapers often provide added-depth and insight into an industry’s structure, strategy and competition.

Use Business Source Complete [on-campus | off-campus], a library research database, to locate articles.  If you are accessing databases from a location other than a Tri-C campus, use the "off-campus" link.  Click on the following image to enlarge it, or view the video below.

You may also want to try Regional Business News [on-campus | off-campus].   Other databases with business articles are located on our Business subject guide.

Still need more?  Try your public library!

Using Your Public Library

If you are still in need of industry information, grab your Greater Access Card and use the online business databases at Cleveland Public Library (CPL) and Cuyahoga County Public Library (CCPL).  (Be sure to first validate your Greater Access Library Card at both libraries!)

Try the Business & Company Resource Center at CPL.  It contains extensive essays for 1,115 industrial categories, 7,000 tables and charts, 3,600 market share reports and 120,000 company rankings.

Also try Standard & Poor's NetAdvantage at CCPL.  It has industry information, including Standard & Poor's Stock Reports, Industry Surveys, The Outlook, Corporation Records and other products.