This chapter introduces the concept of industrial environment analysis as one of the most critical tools for making strategic decisions. In addition to the macro environment of sociological, technological, economical, ecological, and political-legal conditions, understanding interactions among players within each industrial sector forms the key explanation in this chapter. Based on Porter’s Five Forces model, the explanation encompasses competitive forces in terms of buyers’ bargaining power, rivalry among existing competitors, suppliers’ bargaining power, new entrants’ threat, and substitute products. In particular, these competitive forces are explained in the competitive context of technology-based industries. The chapter concludes with the exploration of challenges from emerging forces seen in technology industries, which forms the foundation for strategy-making in the near future.