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Industry analysis refers to a market assessment that provides a business with an idea of the simplicity or complexity of a particular industry. It is essential for any business to conduct industry analysis to aid in reviewing various financial factors and markets in the industry that affect the business (Westerburg & Bode, 2017). Industry analysis involves multiple factors including the industry outlook, the geographical location, the environment, the target customers, and the future prospects. Alejo (2010) proposes that, by investigating and analyzing the competitors, a business owner can determine the best strategies to put in place to achieve the business success in the current and future position. A business owner can conduct industry analysis by two methods. According to Boßelmann & Margaria (2017), they argue that the first method is quantitative analysis, which uses mathematical concepts to assess data, whereas the second method is qualitative analysis, which requires the owner to use his/her judgment when reviewing information (Brandon & Lu, 2009).
According to Gamble et al. (2017), they argue that dance school industry has been a lucrative and steady business over the last decade. It has specifically focused on a broad range of competition and recreational dance classes for people of all ages (Whyte, 2014). Research conducted by Brandon (2009) confirmed that the startup expense should be approximately £10,600 and that includes; the legal expense, accounting, office supplies and stationary, brochure, grand opening and the total capital should be £50,000 to facilitate the running of the business. Ballroom and Latin dancing industry has had a progressive growth and will continue to grow in the coming future (Bennett, 2009). Notably, millions of people enroll in ballroom and Latin dance classes each year. In this regard, since 1985, the number of amateur ballrooms and Latin dancers has increased by 30% in the UK and abroad, an indication that this business will achieve economic success in the next five years (Cloonan, 2016). Additionally, popularity in trendy dancing combined with the growing interest in social dancing clearly indicates that the business future will thrive (Vogel, 2014). The location of the school will be strategically positioned in London, which has been experiencing a steady rise in population over the recent years, thereby; the business will be having potential and available customers. Additionally, the region acts as a financial center in the global arena and hence it plays host to millions of travellers coming originating from different parts of World who could enroll for dance classes as part of exploring the London culture (Mihet, 2013). Moreover, ballroom and Latin dance school industry have had potential monthly growth of 5% of customers varying from children to retired or senior persons (Vogel, 2014).
However, the dance school business is at risk of facing competition both directly and indirectly from other dancing schools in the region. In a direct manner, there are schools that are also performing well in the industry and have potential customers (Bartl et al., 2016). Besides, colleges across the country are incorporating ballroom and Latin dance classes into their curriculum, and this deprives the business of customers especially the college students, who prefer learning dance in their school schedule (Nottorf, 2013; Nag, 2014). Although, the proposed dance school business plan is to work with these colleges by offering classes to their students. Indirectly, the business will face stiff competition from the regional dance schools that offer salsa and tango dances, which are as well preferred by many people in the London (Hall-Witt, 2007).
However, the business will have special events on weekends to organize social events that aim at attracting more customers. According to Hisrich (2017), Henry (2007) and Holt (2013), they state that an affiliate program should be incorporated to enhance the learning program thereby enabling the school to offer holistic learning. Additionally, the business school plan is to affiliate the studio with local ballet and jazz studios for mutual advertising benefits to attract more customers. Notably, in the writings of Patrick & Bowditch (2013), they argue that the proposed ballroom and Latin dance school will experience substantial growth due to its popularity, influenced by the unique factors. By using primary survey, it is clear that the current interest rates of schools offering ballroom and Latin dance are averagely 10% per student (Patrick & Bowditch, 2013). The school dance will need an average of 40 new students each month to increase the annual revenue per student thus, increasing the economic growth of the business. In the writings of Kang et al (2010), they stated that the cash flow is critical to the success of the business. Apparently, ballroom and Latin school business will generate enough cash flow that will enable it to cover all its expenses, and as such, its growth will be facilitated in the next five years (Somkeatkun & Wongsurawat, 2017).
Nevertheless, according to Larivière et al., (2016), ballroom and Latin dance school will be successful if it will identify, consider, and integrate the needs of the customers. As such, the business will be able to compete fairly in the stiff market competition, but it will fail if it will neglect the needs and satisfaction of the customers. According to Brandon & Lu, (2009), they argue that the industry driving forces such as the intensifying competition and changing needs of the customers need to be considered to ensure the success of the business (Waelde & Schlesinger, 2011). Moreover, free and easy entry to major competitions need to be considered as well because they can be a threat to the growth of the business (Chen, 2017). However, there is no risk of uncertainties because the aims and objectives of the proposed dance school are towards achieving success and not failure.
Factors determining the future success of the business are strong security, which other dance schools do not consider, suitable location, and availability of a spacious viewing lounge with an internet connection (Clover, 2013; Gallego, 2017; Gamble, 2017). In this regard, Prakash et al (2017) argue that the favorable factors will attract customers who will raise the economic growth and annual revenue of the business.
Notably, consumers spending on dance classes have gradually increased over the past five years. Ballroom and Latin dance have increased the proportion of the industry revenue because they offer more affordable classes (Banks & Oakley, 2016). In the writings of Butcher & Hicks (2016), having a business with such strategies like the proposed dance school means the business is going to strive in 5 years to come due to the well-established policies that are put in place. According to Hockey & Fetter (2015), they suggest that the current revenue suggests that the economic growth rate of the business will rise; however, the few risks and threats such as the competitive factors should be put into consideration although they are manageable for the business. The industry analysis is a vital process that assures the proposed dance school of success in the next five years (Abor, 2017).
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