The success of our organization will depend on understanding the market in which we operate.
Considerations to keep in mind when analyzing a market
Traditionally, there are two types of market:
Perfect Market: It is one, in which a multiplicity of buyers and sellers intervene, the product is homogeneous, the behavior of consumers is rational compared to price and there is freedom to enter and exit the market, or free competition on the part of companies.
Imperfect market: it is one that does not meet all the requirements in the previous item.
The conditions in which the economy generally operates correspond to an imperfect market.
The market not only regulates aspects concerning supply and demand, but also what is related to the mobility of goods and the provision of services, stimulating production and consumption.
The following chart will explain the market situation better:
|
Offer Demand |
Many | One |
| A lot | Free attendance | Supply monopoly |
| One | Demand monopoly | Bilateral Monopoly |
Taking into account the market to be analyzed, it will be important to pay special attention to the mechanisms and possibilities of entry, exit, prices and logistics to introduce a product or service.
The more precise and detailed the study of any market, the more likely it is to find possible niches and opportunities in them.
Analysis of demand:
As a country develops its economy, attention shifts from primary needs to the provision of industrialized goods and services. To attend to this dynamic process, it is necessary to quantify what the demand will be compared to the requirements of the consumers according to the different levels of income.
Thus, at low-income levels, priority will be given to the consumption of basic necessities, while at high-income levels there will be a selective demand in terms of quality, variety and presentation.
If the total demand is not satisfied, the project's production will have to cover this difference, but if the opposite happens, the new production will have to displace the producers.
It is also necessary to establish the changes or possible variations in demand, caused by prices, tastes and capacity or development.
Having said data, knowing the type of market (perfect or imperfect) and the type of demand (massive, exclusive, etc…), the appropriate forecasts can be developed to start any business well.
