Some of the dimensions to analyze to formulate the market strategy.
Following is a brief review of some of the elements of analysis when determining the market strategy.
To get started:
Any market strategy must be aware of the environment and the external factors that surround the commercial activity that is planned to develop. It is important to analyze the key elements of the environment in order to determine the most appropriate strategies and successfully introduce the commercial idea in a specific market.
In any market analysis, the following elements deserve a space to be strategically addressed and understood.
Clarification: The following list only plans to generate an idea of the dimensions to analyze, not all possible factors are included.
Demographic factors:
It is to determine the basic typology of the market to analyze. Factors such as: Population size, mobility, basic characteristics, growth, etc. are taken into account.
Purchase patterns:
Revenue from the target market, commonly used forms of payment, forms of purchase (wholesale or retail market, direct or indirect sales) etc.
Environmental factors:
Climate, work environment, availability of basic and technical resources, environmental regulations by the Government, environmental acceptance or rejection of commercial activity, etc.
Economic factors:
Economic growth, inflation, interest rates, exchange rate, credit risk, historical percentage of payments, country risk (if applicable) etc.
These factors can be key in the development of the business, especially in the medium and long term.
Dimensions: Many elements of analysis must be taken into account to generate a successful market study that really serves as a strategic compass for the company. If some of the above factors are not taken into account, it is likely that the company will face unexpected situations in the medium or long term that will erode previous efforts.
Competition:
Who are they? What is their power and market share in the market? What is their support? What is their Good Will? How do they sell? How do they buy? How do they produce? How much do they produce? What is their potential capacity? What barriers to entry do they generate? What are the threats to compete with them? What is the risk of competing with them? etc…
Current cases of companies with problems: Enron, Ford, Starmedia, Gateway, BBVA, Banco Santander etc…
Internal analysis factors in relation to competition:
Technology, availability of resources and raw materials, financial resources and financial leverage capacity, competitive advantages of the product and its manufacture, internal costs, external costs, Company disclosure capacity, Good Will of the company, brand strength, etc..
Guild or sector analysis:
If the company must ally itself with other companies or sectors, it is important to analyze their strengths and weaknesses.
An example:
If the company needs the transport service to develop the commercial activity, it is pertinent to analyze rates, degree of competition, (if it is a monopoly or in a competitive sector), to determine the risk of failures, distortions in rates or quality of the service that is can expect from the guild.
Strikes, protests, abuse of rates, etc., are factors that must be anticipated to the maximum.
Some named factors only apply to certain companies, however looking for the largest number of market analysis dimensions for the company is a responsible, healthy attitude that can avoid many headaches for the company.
