Market analysis, the key to business success
At work we are often so busy with hundreds of urgent and important projects that we have no time for what should underpin every business action and decision: the data provided by market analysis, competitor analysis and business research.
In some companies, a lack of time or expertise means that business decisions and growth strategies are not based on hard data. This is a direct road to failure. Intuition matters in business, but it must always go hand in hand with in-depth knowledge of the market.
So what exactly can market analysis (the continuous process of gathering and analysing information about the market, the industry, customers and competitors) help with?
How does market analysis help you make business decisions?
Data and conclusions from market analysis make it easier to decide on launching new products, optimising production and logistics, implementing innovations or entering foreign markets.
Market analysis is needed at every stage of the life cycle of a company and its products. It helps a business adapt to changing customer needs, competitors' activities, the technological environment or the brand's image.
Data and conclusions from market analysis make decision-making easier, e.g. on launching new products, optimising production and logistics, implementing innovations or entering foreign markets. Many company departments can therefore use market analysis, including planning, management, development, purchasing, production, logistics, sales and marketing.
Before you start a business, market analysis helps you verify the chances of success and design a market entry strategy. When a company seeks investors, subsidies or grants, market analysis provides data showing that an idea will be profitable. Companies already in the market can use it to identify barriers to growth and success factors, as well as new markets, customer segments and development opportunities. In the final phase of a business, market analysis provides information about the costs of leaving the industry or supports the sale of the company.
How does market analysis help identify business opportunities?
Market analysis helps identify business opportunities by regularly gathering and analysing information on four key areas: the market, customers, competitors and sources of competitive advantage.
If you want to make decisions that will support your company's growth, you need to monitor the situation in your industry regularly and thoroughly. This means continuously analysing the company's entire environment: economic, legal, technological and competitive. As part of this process, you should gather and analyse information on four key areas: the market, customers, competitors and sources of competitive advantage.
A market review carried out in this way will help you answer many detailed questions that arise in everyday business. Is there room in the market for another player or product? What are the growth prospects for the market as a whole or for a specific segment of it? Will entering foreign markets be profitable? What is the cost of entering the market and of possibly exiting it? What success factors drove the rapid growth of the market leaders? What production, logistics, sales or marketing strategies do other companies in the industry use? Where are competitors better, and what are their weaknesses? What are consumers' needs, habits and preferences? What new market, technology or consumer trends are emerging in the industry?
Why is market analysis the basis of a business strategy?
Market analysis takes time and specialist knowledge, but it provides up-to-date, verified data that can become the basis of the company's growth strategy.
Market analysis takes a lot of commitment and time. It also requires specialist knowledge of information sources, data harmonisation, information verification, and methods of analysis and inference. The effort pays off, however, because it leads to good business decisions and makes it easier to succeed.
That is why market analysis should not be treated as an afterthought or handed to an inexperienced person picked at random, such as an intern or an assistant. If a company lacks the expertise or the time, it should consider outsourcing industry monitoring and market analysis to a professional firm such as MarketHub. It is usually not a large cost, and there is a great deal to gain: time savings and access to up-to-date, verified data that can become the basis of the company's growth strategy.
Need data on your own industry in Poland?
Market Scan by MarketHub offers market reports in PDF, emailed to you within 3 business days after payment.
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