Industry analysis is vital in formulating a successful business model because it determines one of the following:

	1.	Whether entrepreneurs can devise a business model that will allow them decide going on bankruptcy.
	2.	Whether entrepreneurs can devise a business model that will allow them to buy existing companies in an industry.
	3.	How existing companies will decide to change their business-level strategies to improve the performance of their business model over time.
	4.	Whether or not established companies decide to leave.