Industry analysis is a structured approach used by decision makers to develop a sourcing strategy for a product or service, based on the value potential and the relative complexity or risk represented by a sourcing opportunity

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is the application of quantitative techniques to purchasing data in an effort to better understand spending patterns and identify opportunities for improvement

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profiles the major forces and trends that are impacting an industry, including pricing, competition, regulatory forces, substitution, technology changes, and supply$/$demand trends

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is a process by which a firm seeks to identify and quantify all of the major costs associated with various sourcing options