To understand strategic business analysis models, there are certain thing to keep in mind about the nature and structure of these business models which are the units of major industrial decisions that affect the overall future of the business.

      There are a few parts of business analysis models that include various types of analysis like

1. Business strategy analysis
2. Industry Analysis
3. Strategy evaluation and recommendation

     Business strategy analysis begins with the descriptions of markets, products, competitors and skills contained in the market, along with a close understanding of of the structure of the industry and finally with the identification of the key factors towards success. Business strategy begins with a comprehensive understanding of the goals and strategies of the firm and combining these with an understanding of the level of functionality and operational capacity of the firm to meet competition. Strategic evaluation comprises of the internal and external factors that contribute to the firms' business strategy. This strategy is then pitted against the firm's resources, internal capacity, key success factors and ability to meet competitive factors. Critical issues and recommendations identify some of the immediate issues that the firm needs to address for the proper functioning of ongoing business. This analysis ends with suitable and useful recommendations that address these issues, find solutions to them so that these can be incorporated into the business strategy model for the functional advancement of the firm.

      Industry Analysis comprises of a definition of the business and identification of the key success factors. Such a comprehensive analysis is based on certain important factors like:

   Description of the Industrial Structure

 An analysis of industry describes the five forces of competition.

1. The primary force comes with the customer segments that make up the market. The size and importance of customers are factors that are directly proportional to the negotiability of prices and deals that decrease the profitability of the firm. The growth and size of segments determine their overall influence on product development and competition level.
2. The second force comes from the competitor and their various strategies to gain the share in markets and increase profitability.
3. The third force comes from the suppliers of the industry. The supply of an industry often holds the balance between the firm's potential to meet demand competitions or of falling behind on meeting these demands.
4. The fourth force comprises of the changes in the structure of the industry which can be due to new competitors entering the industry or existing competitors exiting the industry.
5. The fifth force represents the product market structure's potential to change  through the substitution of services or products to alternative methods of satisfying customers' demands. This requires for the industry to identify proper substitutes and understanding the characteristics that would cause effective substitution.

     Identification of Key Success Factors- Perhaps the most important factor determining the growth of an industry is recognizing the factors and trends that comprise of the key factors of success for the industry.