Introduction to Industry and Competitive Analysis for the CFA Level 1 Exam
Embark on a journey to explore the fascinating world of industry and competitive analysis. This voyage will take you through the key concepts and techniques essential for the CFA Level 1 Exam. Let’s dive right in!
Industry Classification
Peel back the layers of industry classification systems, spanning from commercial to government. Learn why they’re key for comparing valuations and spotting trends, and get familiar with notable systems like GICS, Russell Global Sectors, and the NAICS. Finally, step into the shoes of an analyst and master the art of crafting peer groups for better valuation comparisons.
► Dive into the world of industry classification systems right here.
Industry Survey
Embark on a journey through industry analysis, focusing on classifying industries by life cycle, assessing demand factors, and evaluating competitive dynamics. Essential for investors and analysts aiming to navigate the complexities of the financial markets successfully.
► Begin your exploration of industry survey right here.
Porter’s Five Forces
Step into the world of Porter’s Five Forces, the foundational tool for industry analysis. Uncover the factors that crank up competition, from rivalry among existing competitors to the threat of substitutes. Plus, get a sneak peek into how an analyst assesses an industry, including barriers to entry, industry concentration, and price competition.
► Dive into the heart of industry analysis with Porter’s Five Forces right here.
PESTLE – External Influences on Industry Growth
Explore the maze of external influences on industries, digging into the effects of macroeconomic factors, technological advancements, demographic changes, governmental policies, and societal shifts. Learn how these factors collectively mold the growth, profitability, and risk of various industries. Reinforce your understanding with an insightful case study about the airline industry.
► Jump into the exploration of external influences on industries here.
Competitive Positioning
Learn to assess a company’s competitive positioning with Michael Porter’s generic strategies: cost leadership, differentiation, and focus. This analysis will equip you with the understanding of how companies achieve and maintain their competitive edge in the marketplace.
► Learn to analyze a company’s competitive strategy here.
