At work, we are often so occupied with many urgent and important projects that we do not have time to deal with what should be the basis of every action and decision in a company. What are we talking about now? About data provided by market research, competitive analysis, and business research.
There are companies where – due to lack of time or competencies – business decisions and development strategies are not always based on hard data. Unfortunately, this is a simple path to failure. Although intuition in business is very important, it must always be accompanied by in-depth knowledge of the market.
So, how can your company benefit from the market analysis that is understood as a continuous process of gathering and analysing information about the market, industry, customers, and competition?
Market analysis helps make good decisions
Market analysis is needed at every stage of the life cycle of a company and its products. Thanks to the analysis, the business can be successfully adapted to the changing needs of customers, the activities of competitors, the technological environment, and the brand image.
Data and conclusions from market analysis facilitate decision-making, e.g., on introducing new products, optimising production and logistics, implementing innovations, or entering foreign markets. Therefore, market analysis can be used by various departments and functional divisions of the company, including planning, management, development, procurement, production, logistics, sales, and marketing.
Before deciding to start a business, market analysis helps verify the chances of success and design a market entry strategy. When a company applies for investor support, subsidies or grants, the market analysis provides data that can prove that the business idea will be profitable. Thanks to market analysis, companies already operating in the market can identify barriers to development, success factors, as well as new markets, new customer segments, and new development opportunities. And in the declining phase, the market analysis provides information about the costs of exit or supports the company’s sales process.
Market analysis helps identify business opportunities
If you want to make decisions that will support your company’s development, you need to monitor the situation in your industry regularly and carefully. This means the necessity to constantly analyse the entire environment of the company – economic, legal, technological, and competitive. As part of this process, information on four key areas should be collected and analysed: market, customers, competition, and competitive advantage factors.
Analysis of the market will allow you to answer many detailed questions that arise during everyday work. Is there a place on the market for another company or product? What are the development prospects for the entire market or its specific segment? Will it be profitable to enter foreign markets? What is the cost of entering the market or exiting the market? What success factors determined the dynamic development of market leaders? What production, logistics, sales, and marketing strategies are used by other companies in the industry? What are the strong and weak points of the competition? What are the needs, habits, and preferences of consumers? What kind of market, technology, or consumer trends are emerging in the industry?
Business analysis helps develop business strategy
Market analysis requires much commitment, a lot of time, as well as specialist knowledge of information sources, data harmonisation, information verification, and analysis methods. However, this considerable effort pays off because it will result in good business decisions, and it will facilitate business success.
Therefore, it is not worth treating the business analysis neglect and commissioning it to an inexperienced, random person, e.g., an intern or an assistant. And if your business lacks competence or time, consider outsourcing industry monitoring and market analysis to a professional company such as Market Hub. Usually, it is not a big cost, and you can gain a lot: time savings and access to up-to-date and verified data that can become the basis of the company’s development strategy.
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