Strategic Analysis of Market
• Customer analysis; the objective is to find descriptive characteristics that are highly correlated to the variables used to form the segments.
• Analysing customer satisfaction; is measured by comparing customer expectations about the product and supporting services with the performance of the product and supporting services
• Competitor analysis; information useful in the competitor analysis includes business scope and objectives, market position, market targets and customer base, positioning strategy, financial and other.
• Positioning analysis
Choosing Attractive Market
• Choose criteria to measure market attractiveness and competitive position
• Weigh market attractiveness and competitive position factors to reflect their relative importance
• Assess the current position of each potential target market on each factor
• Project the future position of each market based on expected environmental, customer and competitive trends
• Evaluate implications of possible future changes for business strategies and resources requirements
Factors Underlying Market
• Customer needs and behavior:
– Are there unmet needs we can satisfy?
• Market or market segment size and growth rate:
– Market potential in units, number of prospective customers
– Growth rate in units, number of prospective customers
• Macro trends
• Opportunity for competitive advantage:
– Can we differentiate?
– Can we perform agains critical success factors?
• Firm and competitor capabilities and resources
• Attractiveness of industry in which firm competes
• The five step procedure provided in this meeting identifies segments having the highest potential.
• Self diagnostic questions to test firm’s ability to apply the analytical tools.