Today, in this competitive business environment, constant growth and profitability are never a guarantee. With advancements in technology, the life cycles of products and services keep shortening. Additionally, business models keep changing and new competitors enter from various industries. This persistent instability makes it very crucial for businesses to seek new market opportunities to grow and stay ahead of the competition. It is in this context that the real importance of market opportunity analysis comes into the picture.
It helps businesses to examine various factors like direct and indirect competitors, brand value propositions, existing regulations, supply chains, and the general business environment. All these factors help frame winning business strategies and allow your business to flourish positively amidst the competitive environment.
With the help of the market analysts at Infiniti, we have highlighted a few reasons why market opportunity analysis is important for any business. But before delving into those factors, let’s understand a bit about market opportunity analysis in simple terms.
What is Market Opportunity Analysis?
Market opportunity analysis is a tool to determine and access the desirability of a business opportunity. It forms a portion of the business strategy; wherein, before launching a new product or service, the market is analyzed to identify the anticipated revenues and profits from it. Forecasted demand is one of the most important factors that should be considered and analyzed during opportunity analysis.
There are a few important questions that can be answered through this analysis. Therefore, these questions must be considered by businesses that perform market opportunity analysis:
- What are the most profitable segments of the market?
- What is the rate at which the opportunity is growing?
- What do competitor and gap analysis mean?
- What are the major sustainable differentiation points?
Why is it Important?
1. Market opportunity analysis helps identify the needs of the customers and accordingly plan, design, and deliver the products or services to derive customer satisfaction.
2. It helps the company to stay ahead of the competition due to the introduction of customer-oriented products.
3. It also allows the firm to make optimum use of resources.
4. It helps the business to accomplish goals like profit margin improvements and market share etc.
5. It also enables an organization to extend and spread its business in new as well as existing markets.
To know how market analysis can aid in business growth, request more info from our market research experts.
