Following are the key elements of a market analysis:
• Market size.
• Market growth rate.
• Market profitability.
• Industry cost structure.
• Distribution channels.
• Market trends.
Market Size
To decide market size of a business it is important to spot the correct target customer. This will help in choosing a right location and what product or service to offer, selecting pricing and selling strategy as well.
Market Growth Rate
The market growth rate helps the company or organization to find out whether in future the size of the market is expected to grow in which the company is able to compete.
Market Profitability
Market profitability helps to identify how potential the market really is that is how beneficial a business can be when entering in to particular market. This helps the company to determine whether they can earn a profit by selling a particular product or not.
Industry Cost Structure
By knowing the industry cost structure helps the organization to determine and find methods to increase business success by looking at other companies, rivalries. And by knowing the industry cost structure the organization or pain players in the market can set entry and exit barriers.
Distribution Channels
Distribution channel helps the organization determine the best method of distribution system by means of which their products are accessible to as many consumers as possible.
Market Trends
The company should keep track of market trends that what is required by the potential customers, what needs is not presently being met, and so on.
• Market size.
• Market growth rate.
• Market profitability.
• Industry cost structure.
• Distribution channels.
• Market trends.
Market Size
To decide market size of a business it is important to spot the correct target customer. This will help in choosing a right location and what product or service to offer, selecting pricing and selling strategy as well.
Market Growth Rate
The market growth rate helps the company or organization to find out whether in future the size of the market is expected to grow in which the company is able to compete.
Market Profitability
Market profitability helps to identify how potential the market really is that is how beneficial a business can be when entering in to particular market. This helps the company to determine whether they can earn a profit by selling a particular product or not.
Industry Cost Structure
By knowing the industry cost structure helps the organization to determine and find methods to increase business success by looking at other companies, rivalries. And by knowing the industry cost structure the organization or pain players in the market can set entry and exit barriers.
Distribution Channels
Distribution channel helps the organization determine the best method of distribution system by means of which their products are accessible to as many consumers as possible.
Market Trends
The company should keep track of market trends that what is required by the potential customers, what needs is not presently being met, and so on.
