Wednesday, November 10, 2010

MARKET ANALYSIS

Market Analysis is generally done on the following dimensions:

* Actual and potential market size: Important sub-markets, their size; the potential market includes the usage gap.

* Market growth rate: The driving forces behind sales, and forecasting of growth rate.

* Market profitability: The intensity of competition depends on five factors : existing competitors, supplier power, customer power, substitute products and potential entrants.

* Cost structure: To analyse the value added by the production stage and observe how it is changing and also the effect of learning curve.

* Distribution system

* Trends and developments

* Key success factors: What skills and competencies are needed to compete now and in the future

* The competitive nature of the market: The nature of competition among existing firms, if there is any potential threat from new entrants or the availability of substitute products, how powerful the customer and supplier groups are.