A business does not exist in a vacuum – its existence and activities have an effect on its respective industry environment and vice versa.
Industry Structural Analysis is analysis to establish whether an industry is or can be structurally attractive, meaning, “is there a reasonable balance of power between the five forces of rivals, potential entrants, buyers, suppliers, and substitutes[?]” (Cole, 1994). In other words, what is the likelihood that you will make a profit and that the business will grow? And, what is the likely position of the business in the industry?
Cole, Gerald A. (1994). Strategic Management. New York. Continuum.