2XA is an established light engineering manufacturer operating in a single country within the European Union (EU). With 300 employees, the majority of whom are employed in the manufacturing processes, the company is run like a large family business. 2XA supplies components to specialist car manufacturers and manufacturers of light aircraft, all of which are small companies. 2XA has had the same customers for a number of years and there are many personal friendships between the senior management of 2XA and those who own or manage those customer companies.
Since most of 2XA's sales are a result of repeat business it does not actively market its products. What marketing it currently does consists of an occasional advert in trade magazines and attendance at trade fairs where the Sales Director, and a few office staff, offer light refreshments to their existing customers and anyone who stops at their stand.
In the past two years 2XA has started to lose customers to more aggressive suppliers from neighboring countries, which have entered 2XA's home market. The board of directors is concerned at the loss of business and is not really sure why it has happened. It has decided that it is time to become more proactive in its approach to the market and feels the need to know more about both the competitive environment and the competitors themselves.
You are required: as the Manager you have been asked to:
(a) Explain what is meant by Industry Analysis using any models you consider appropriate.
(b) Describe the information that 2XA might include in such an analysis.
(c) Advise the directors as to the possible sources of the information which 2XA could use in performing an industry analysis.