The three most important questions when conducting an industry analysis.

1. How fast is the industry growing. This is important because is the growth constant or is it something that grew at a fast rate because of a fad and is going to fizzle out. Or is it something that many different competitors are also marketing. This is an important factor to think about.
2. How many competitors are there. This ties into my first question. How many other people also have this product marketed or how many are planning to add it to their business. This can affect your odds of being successful
3. With the way the market has been do you have substitutes available? Things are hard to keep in stock and are the products needed to manufacture your products readily available and are they cost effective. Is the substitution as good as the real things.