Business growth strategies include the evaluation and assessment of new markets and product lines or suggesting new ways to reach existing markets and better meet the needs of customers. In today’s business environment, sustaining growth is a major challenge for companies. Scientific and technological advances shorten the life cycle of products and services, changing business models and giving the scope to new competitors to enter the market. This constant instability makes it important for every market player to seek new business opportunities. But the question that arises here is how to do market opportunity analysis in such conditions?
The first thing you need to do is, define a framework to help search for opportunities. To do this, it is important to understand the business direction of your company and to have knowledge of the strengths, resources, and capabilities of your company. Once you develop a comprehensive understanding of your company goals and areas of expertise, the next step involves analyzing the market and assessing the needs of your customers and how they are being met by companies. For an effective market opportunity analysis, it is necessary to evaluate the business model as a whole by identifying customers and companies and other factors such as direct and indirect competitors, brand value propositions, existing regulations, supply chains, and the general business environment. In this article, we have examined how to analyze these factors in detail:
Steps to strengthen your market opportunity analysis
Identify your customer segments
To understand the demands of your customers, it is important to identify customer segments that share common characteristics. These characteristics include gender, age, educational level, place of residence, occupation, income level, lifestyle, interest, attitude, values, and motivations behind purchasing. The analysis of these characteristics can help estimate the number of potential customers a business can have. These can also help in identifying motivations that lead to purchasing decisions including prestige, price, durability, convenience, and design. This can make your market opportunity analysis more result oriented and can help you identify areas where you can invest safely to yield better ROI.