Market Intelligence
- Why? What? How?
June 7th, 2012
Johanna Haapanen
Consultant
Global Intelligence Alliance, Helsinki
Johanna.haapanen@globalintelligence.com
www.globalintelligence.com
Agenda
• Global Intelligence Alliance in a Nutshell
• Market Intelligence - Why?
• Market Intelligence - What? And How?
• More about GIA
www.globalintelligence.com - page 2
Global Intelligence Alliance in a Nutshell
•
•
•
•
•
Geographical presence
Global Intelligence Alliance (GIA) is
the leading provider of Strategic
Market Intelligence services and
software.
GIA was founded in 1995 and is
owned by management and private
equity investor CapMan.
GIA’s
customers
are
large
multinational companies and growthoriented companies operating in a
wide variety of industries.
GIA serves more than 120 partner
customers on a continuous basis.
GIA has grown with an average annual
growth rate of 39% since year 2000
and currently employs more than 120
people.
Product & Service offering
Customized market monitoring solution
Highly analytical research and advisory for
customers’ strategic decision making needs
On demand business research service
State-of-the-art Market Intelligence software
enabling full control of the intelligence process
Consulting services, events and online resources for
developing intelligence programs
www.globalintelligence.com - page 3
Market Intelligence - Why?
www.globalintelligence.com - page 4
The major exporting partners of Estonia are
located in the neighboring countries
Exporting commodities
Source: CIA Factbook
Machinery and electrical
equipment
21%
Wood and wood products
9%
Metals
9%
Furniture
7%
Vehicles and parts
5%
Food products and beverages
4%
Textiles
4%
Plastics
3%
www.globalintelligence.com - page 5
Understand, compete and grow
Critical decisions without sufficient
information, e.g. entering a new
market
During recessions,
budgets of market
intelligence are often
cut at the time when
risks and needs for
intelligence are on
rise
•
•
•
•
Competitive
landscape
Market
intelligence
Plans are usually based on
knowledge, data, gut feeling and
experience
Voice of
customers
Market intelligence makes
decisions safer
Market and industry
Market Intelligence helps organizations understand their business environment, compete successfully in it,
and grow as a result.
Market Intelligence collects information about market players and strategically relevant topics and processes
it into insights that support decision-making.
Organizationally, Market Intelligence is typically placed under strategic planning, business development or
marketing.
Terms such as competitor analysis, technology analysis or customer insights are often used under the
overarching term Market Intelligence. Market Intelligence should be seen synonymous with concepts such as
Competitive Intelligence and Business Intelligence.
www.globalintelligence.com - page 6
The quality of executive decision-making leaves
plenty of room for improvement…
An Economist Intelligence Unit study says that…
…61% of executives (72% in large firms) characterize management
decision-making at their firms as moderately efficient or worse
…less than 10% of executives have information when they need it
… 46% assert that wading through huge volumes of data serves to
slow decisions
...56% are often concerned about making poor choices because of
faulty, inaccurate or incomplete data
EIU: “In search of clarity: Unravelling the complexities of executive decision-making”, Sep 2007
www.globalintelligence.com - page 7
Business environment is getting increasingly
complex and dynamic
www.globalintelligence.com - page 8
Intelligence is needed by a large number of
organizational functions and processes
www.globalintelligence.com - page 9
A lot of information available makes decision
making challenging
www.globalintelligence.com - page 10
”Each were partly right and all were wrong”
What is an elephant?
”Elephant is a
fan ...”
”Elephant is a
wall ...”
”Elephant is
like a snake ....”
”Elephant is
like a tree ...”
www.globalintelligence.com - page 11
Articles on software industry
China overtakes US as largest
smart phone market
- Canalys highlights importance of understanding
local app store and channel trends
Shanghai, Palo Alto, Singapore and Reading – Wednesday, 2 May 2012
Canalys today released to clients its detailed smart phone
shipment estimates by country for Q1 2012. Total shipments
worldwide grew 45% year on year to 146 million units, but
significant country and regional differences were apparent.
Shipments in the US rose just 5% year-on-year, in marked
contrast to the 81% growth seen across the Asia Pacific region.
Shipments in China doubled and overtook those in the US for the
first time. In Q1, China represented 22% of global smart phone
shipments, while the US accounted for 16%. A year earlier these
figures were the other way around. Of the top 10 countries for
smart phones, half are now in the Asia Pacific region.
Source: Canalys
Gartner Says Android to Command
Nearly Half of Worldwide
Smartphone Operating System
Market by Year-End 2012
Egham, UK, April 7, 2011— Worldwide smartphone sales will reach 468
million units in 2011, a 57.7 percent increase from 2010, according to
Gartner Inc. By the end of 2011, Android will move to become the most
popular operating system (OS) worldwide and will build on its strength to
account for 49 percent of the smartphone market by 2012 (see Table 1).
Source: Gartner
ComScore: Android's US market
share passes 50 percent, BlackBerry
OS and WP7 slide
Another month, another round of ComScore's US mobile studies. For the
three-month average period ending in February 2012, 234 million
Americans age 13 and older were found to be using mobile devices, with
Samsung having its products in the hands of 25.6 percent of the
American mobile market. Behind it came LG (19.4 percent, dropping
from 20.5 percent), Apple (13.5 percent, a 2.3 percentage point
increase), Motorola (12.8 percent, down from 13.7 percent) and HTC
(6.3 percent, a 0.4 percentage point increase).
Source: Engadget
www.globalintelligence.com - page 12
Intelligent decision-making based on
market monitoring & project support
Decision-making is best
supported through a
combination of
• Continuous market
monitoring
• Intelligence projects
that support the
specific decision points
in different
organizational functions
and processes
www.globalintelligence.com - page 13
Benefits of Market Intelligence
www.globalintelligence.com - page 14
Benefits of Market Intelligence: a practical
example
• Time savings and ease of finding
information
◦ According to an end user survey
among GIA’s customers, an average
end user saves 6* hours per month
through having up-to-date Market
Intelligence content gathered into
one place where it’s easy to find
and search for
(*2009 End-user Survey)
• In an organization where the
end user base is 300 decisionmakers, the total time savings
can be calculated as follows:
◦ 300 * 6 hours / month = 1,800 hours
per month
◦ If a value of EUR 50 is calculated for
each end user’s one hour of saved
time, the total monetary savings
amount to EUR 90,000 in each
month
www.globalintelligence.com - page 15
Intelligence cycle: the process of
adding value to information
The “intelligence cycle”
reflects the continuous,
systematic nature of utilizing
information in backing up
business decisions.
Within the cycle, needs
analysis drives a process
where data is collected and
processed into actionable
intelligence that is utilized
by decision-makers.
www.globalintelligence.com - page 16
Market Intelligence - What? And
How?
www.globalintelligence.com - page 17
Where would you like to be right now?
What need to know
Target country
(market attractiveness)
How to receive the information
Find information from
secondary sources
Location in the country
(best fit to the need)
You or Travel agency
(do you need help)
How to get there
(market entry)
Things to do
(market sizing, segment)
Talk to experts, friends,
colleagues
Analyze and make a
decision
Travel
Other options available
(benchmarking)
www.globalintelligence.com - page 18
How do I know what I need?
We need to increase the sales
volumes of our products in a
new segment. Can you help
us find a new distributor?
We lost a big client and need
to find new markets in order
to employ our engineers.
?
We are a governmental organization and
we need to find markets abroad and
provide services to other governmental
organizations. Can you help us to
understand how these kind of services
are needed in other countries?
We need to understand our
competitors’ logistics and
supply chain model and their
strengths and weaknesses.
www.globalintelligence.com - page 19
Solutions are available
Market intelligence
products
Value Chain Analysis
Market Attractiveness
• The value chain can include commodities sourcing, production, competition, sales,
distribution.
• Market Attractiveness Analysis is used to define attractive market segments.
Market size analysis
• Market Size Analysis is used to identify the size and market share for various market
segments
Market entry analysis
• Market Entry Analysis refers to the review of a market in order to understand if an
investment is interesting and in what form a company should enter a specific market.
Competitive landscape
• Competitive Landscape Analysis refers most often to a high-level overview of the
competitive landscape.
Trends analysis
• Trend Analysis is used to identify present and future trends and their impact on
business.
www.globalintelligence.com - page 20
Market Attractiveness Analysis
• Comparative analysis of markets or
geographies to support market entry or
market selection
• Methodology includes definition of
market attractiveness metrics, data
collection on local level, comparative
analysis, and recommendations
• Utilizes wide range of data sources and
evaluation
criteria
ranging
from
macroeconomic level to industry-level
• Market size and growth
• Competitive forces
• Customer preferences
• Distribution channels
• Local supply-chain environment
• Political and regulatory environment
www.globalintelligence.com - page 21
Cancer treatments study in the Baltics and Poland
to evaluate expansion potential
Pharmaceuticals & Healthcare| Strategic Analysis – Market Attractiveness Analysis, Advisory
KEY BENEFITS
The client gained an ability to make concrete decisions based on unified research results, with
good comparability. They also got an access to highly detailed data on local healthcare
systems and their capacities and bottlenecks, put into local context for decision-making.
NEED
APPROACH
SOLUTION
A Swedish private clinic was
interested in the market for specific
cancer-treatment services. Several
locations for representative offices
were considered, thus detailed
insights were needed to assist in
making a decision. The client
especially needed data on current
medical equipment and problem
areas in current cancer treatment
routines.
Company interviews were conducted,
extensive secondary research done,
and the data and findings analyzed
and summarized.
Market potential of each country was
described and ranked. Most suitable
regions for local offices were
identified by country. Also, current
problems with regards to statefinanced health-care in the field were
described, helping the client to
prioritize the 4 markets.
Methods: Secondary research,
company interviews, using financial
databases, comparative analysis.
Application: Strategic Planning
Geography: Estonia, Latvia,
Lithuania, Poland
Case study (#119)
www.globalintelligence.com - page 22
Market Sizing & Forecasting
Annual growth estimate %
General
Energy
Oil & Gas
Chemical
Pulp & Paper Desalination engineering &
General
other
x%
x%
x%
x%
x%
Energy
&
Oil & Gas
Chemical
Pulp & Paper Desalination engineering
x%
other
x%
x%
x%
x%
x%
XX kkkk
33.5
9.1
6.9
4.2
1.6
1.0
10.6
X
X
X
X
X
X x% 33.5
tons
tons
33.5
XX kkkk
33.5
9.1
6.9
4.2
1.6
1.0
10.6
X
X
X
X
X
X
tons
tons
America
America
+y%
+y%
America
America
+y%
+y%
6.7
X
Asia
Asia
+y%
+y%
Asia
Asia
+y%
+y%
8.7
X
ROW
ROW
+y%
+y%
ROW
ROW
+y%
+y%
2.6
X
5.5
X
2.3
X
6.7
X
8.0
X
4.4
X
1.1
X
2.6
X
XX kk
tons
tons
1.1
X
XX kk
tons
tons
XX kk
tons
tons
8.8
X
0.8
X
XX kk
tons
tons
XX kk
tons
tons
XX kk
tons
tons
XX kk
tons
tons
1.5
X
0.7
X
XX kk
tons
tons
XX kk
tons
tons
2.7
X
0.8
X
XX kk
tons
tons
6.8
X
8.8
X
3.6
X
XX kk
tons
tons
XX kk
tons
tons
6.8
X
1.1
X
2.7
X
0.7
X
X
1.7
XX kk
tons
tons
1.1
X
1.8
X
3.6
X
8.0
X
X
1.7
XX kk
tons
tons
2.3
X
4.4
X
8.7
X
XX kk
tons
tons
1.8
X
5.5
X
Current total market per region
• A reliable market size estimate requires
triangulation by using various data
sources (both secondary and primary)
and analysis methods (both top-down
and bottom-up)
Europe
Europe
+y%
+y%
Europe
Europe
+y%
+y%
Current total market per region
• A market sizing project begins with an
elaborate definition of the product or
market of interest
Global market study for stainless steel fittings
Global market study for stainless steel fittings
Annual growth estimate %
• Quantitative
market
sizing
and
forecasting has many applications,
including business planning, market entry
strategy, product development, and
investment strategy
1.5
X
XX kk
tons
tons
XX kk
tons
tons
XX kk
tons
tons
Total
Total
XX kk tons
tons
Total
Total
XX kk tons
tons
www.globalintelligence.com - page 23
GIA Group apply a bottom-up model to create
regional estimates
Regional estimates were
added together to establish
global market potential
Global market potential
Regional market potential
Regional market sizes were
constructed by summing up
country market sizes
Countries market potential
Local primary research was carried out in
selected countries to establish accurate
market structure, size and growth.
Marginal countries were left
out of market size
www.globalintelligence.com - page 24
Global Market Benchmark – Industry X Markets in
Year 9
14
12
Industry A
10
Industry C
Industry B
CAGR
8
Industry I*
6
Industry H
Industry F
4
Industry J
Industry E
2
0
0
10
20
30
40
50
60
70
80
Market size in € bn
www.globalintelligence.com - page 25
Analysis of logistics warehouse services
Logistics & Transportation| Strategic Analysis – Company Profiles, Market Sizing
KEY BENEFITS
Insight to the warehousing market, which helped in assessing the market’s investment potential
Better understanding of competitive positioning in the market
NEED
APPROACH
SOLUTION
Customer operating in the Nordic
logistics industry wanted to
benchmark its own operations
against competing warehouse
solutions. For this purpose, the
customer needed an in-depth study
of the warehousing markets in
Sweden.
Expert interviews were conducted
with various industry players. The
findings were supplemented and
validated with secondary research
and analysis.
Profiles of top-10 warehousing
service providers in the market and
their strategies, as well as detailed
information of warehouse facilities of
the target companies. The analysis
included an overall market size
estimate.
Methods: Primary and secondary
research
Application: Strategic Planning
Study on Nordic Warehousing
Geography: Sweden
Case study (#21)
Location
Size
(m²)
Buildi
ng
year
Emplo
yees
Classification/
Type
Under
construction
1
XXX
XXX
XXX
XXX
XXX
XXX
2
XXX
XXX
XXX
XXX
XXX
XXX
3
XXX
XXX
XXX
XXX
XXX
XXX
4
XXX
XXX
XXX
XXX
XXX
XXX
www.globalintelligence.com - page 26
Competitive Landscape Analysis
• An analysis of the competitive forces in
a market or customer segment
• Description of competitors, their market
presence,
offering,
differentiation,
strategies, strengths and weaknesses
• Assessment of your company’s or
brand’s positioning and competitive
opportunities and threats in the market
• Assessment of other competitive forces
using Porter’s five forces model
• Recommendations for market entry or
competitive strategy
www.globalintelligence.com - page 27
Market analysis of wind power in China
Energy, Resources & Environment | Strategic Analysis – Market Sizing, Competitive Landscape Analysis
KEY BENEFITS
Actionable intelligence to support entry into Chinese market, with the ability to devise an
effective competitive strategy in the new market
NEED
APPROACH
SOLUTION
A leading supplier of mechanical
equipment for the wind power
industry was exploring market
opportunities in China. To make a
successful entry into the market, the
company needed in-depth knowledge
of the wind power market in the
country.
Customer and supplier interviews to
establish competitive landscape and
demand drivers in the target country.
Market size and share analysis
based on primary data.
GIA was able to provide valuable
market data and pinpoint both
opportunities and threats for the
client. The project included a
consultative workshop that resulted in
actionable recommendations for a
market entry strategy.
Methods: Primary research, market
size and share analysis, market entry
support
Application: Strategic Planning
Geography: China
Case study (#13)
www.globalintelligence.com - page 28
Trend Analysis
•
Expertise on trend analysis for B2C and B2B markets with
focus on grouping and analysing emerging consumer
preferences
Identify and map changes in office
furnishing in 2-5 year time
horizon
•
A trend analysis project aims at identifying new success
factors, supporting innovation & product development,
challenging prevailing expectations and helping companies
prepare for potential opportunities
Analyze, based on secondary data,
how white collar work changes in
near future
•
A trend analysis project can review time horizons in a
range of 1-5 years and it can be used to break down major
trends (e.g., aging) into more detailed entities
•
The trend analysis project is carried out in 4 phases and it
always involves a client team to work with the project
outcomes to reach best understanding of the situation
•
The project delivery time is approximately 1,5 months and
requires 2-3 client meetings
Example: Office Furniture Manufacturer
Identified Future Office Trends with Trend
Analysis project
Identify office design themes
relevant for the client
The Project Fed New Ideas For Customer
Product Development Team
www.globalintelligence.com - page 29
Market trend analysis, demand drivers and
competitor profiling
Industrial services| Strategic Analysis – Market Assessment
KEY BENEFITS
Customer gained insights on the market where a potential investment target operates and was
thus able to build a more focused and in-depth investment pitch to present.
NEED
APPROACH
SOLUTION
In order to be well-prepared for an
initial meeting with a potential
investment target, Private Equity
company wished to understand on
a broad global level the market and
therein of a potential investment
target. The study focused on market
trends, key competitors and their
strengths, and regional differences
in demand and demand drivers of
key client groups.
Initial desk research was conducted
using industry sources and company
databases to create an
understanding of the major trends
and players in the market. This was
deepened and complemented by indepth interviews with some of the
larger clients as well as multiple key
competitor interviews.
Regional market size estimates, key
markets and trends were analyzed.
Hands-on ideas on key success factors
were delivered, together with client
perception of key companies and
supplier selection process.
Application: Investment pitch
Geography: Global
In addition, competitor long-listing and
five 1-slide profiles on major players
was provided.
Methods: Primary and secondary
research
Timeline: 2 weeks from kick-off to
final delivery
Case study (#209)
www.globalintelligence.com - page 30
Value-Chain Analysis
Purpose:
• The research aims at mapping out the value chain
of a certain industry or business
VALUE-CHAIN ANALYSIS
Methodology:
VALUE CHAIN
• The analysis produces qualitative and quantitative
insights of the structure of a value chain
• The analysis employs a combination of primary
and secondary research to ensure comprehensive
data coverage
RESOURCING
RESOURCING
RESOURCING
Examples:
• Value chain process maps and identification of
key players
• Presentation of dynamic forces in the value chain
www.globalintelligence.com - page 31
Supply chain analysis in the mobile phone industry
Telecommunication, Technology & Media | Rapid Response Research: Supply Chain Analysis
KEY BENEFITS
Ability to plan post-acquisition business strategy based on comprehensive understanding on
the supply chain dynamics and developments.
NEED
APPROACH
SOLUTION
Customer operating in the mobile
handset market was looking to adjust
own strategy and needed
comprehensive picture of
competitors’ and customers’ supply
chain models for benchmarking
purposes.
Each competitor’s strategic moves in
the supply chain were analyzed. For
each company, an overall strategy
and technological development
analysis were presented.
Several customer and competitor
supply chain structures modeled
utilizing customer’s internal
information and secondary research
findings.
Application: Strategic Planning
Geography: Global
Methods: Secondary research,
collecting in-house tacit knowledge,
strategy analysis, supply-chain
analysis
Case study (#17)
www.globalintelligence.com - page 32
Market snapshot of Singapore
Basic facts
Population
5,4 million (06/2012)
Languages
Mandarin (official) 35%, English (official) 23%, Malay (official) 14.1%,
Hokkien 11.4%, Cantonese 5.7%, Teochew 4.9%, Tamil (official) 3.2%,
Unemployment
2%
Legal system
English common law
GDP growth rate
4.9%
Import commodities
Machinery and equipment, mineral fuels, chemicals, foodstuffs,
consumer goods
Export commodities
Machinery and equipment (including electronics and
telecommunications), pharmaceuticals and other chemicals, refined
petroleum products
Economic, technological and legal factors
Market outlook
•
The government has planned to spend USD 2.5 billion over 2010–2015 on a
Continuing Education and Training program to develop expertise in several
professions.
•
Even though Singapore is a world leader in governance, the current
administration has been claimed to restrict the political freedom of
citizens
•
Singapore’s corporation tax is one of the lowest in Asia.
•
Singapore set strong growth in 2010, but industry was impacted by
low external demand
•
Future prospects
• Free trade agreements with China and Taiwan
• Improved bilateral ties with Malaysia
• Government to ease restrictions on media
•
The education sector has been performing well in Singapore, but
income inequality remains a major concern
•
Singapore has invested in research and development in the past, but
innovation output in terms of patents granted has been low
•
Even though Singapore is business-friendly country, political
interference in judicial decisions is widespread
•
Future risks
• Racial tensions
Source: Marketline, CIA Factbook
www.globalintelligence.com - page 33
Company presentation
www.globalintelligence.com - page 34
GIA is the leading provider of Strategic Market
Intelligence services and software
•
•
•
•
•
GIA is the preferred partner for organizations
seeking to understand, compete and grow in
international markets.
GIA was founded in 1995 and is owned by
acting management and private equity
investor CapMan.
GIA’s customers are primarily large
multinational companies and growthoriented companies operating in a wide
variety of industries.
GIA serves more than 120 partner customers
on a continuous basis.
GIA has grown with an average annual
growth rate of 39% since year 2000 and
currently employs more than 120 people.
www.globalintelligence.com - page 35
Access local knowledge in over 100 countries
GIA Group has 11 offices on 4
continents. Together with affiliated
GIA Member companies, certified GIA
Research Partners and consultants,
GIA provides access to local
knowledge in over 100 countries.
All GIA Network companies adhere to
GIA’s Research and Analysis Quality
System as well as the SCIP Code of
Ethics.
www.globalintelligence.com - page 36
We understand your business
With a track record of supporting thousands of clients around
the world, we bring you practical expertise in your markets, as
well as knowledge from our practices covering 11 industries
and all the key business functions.
Industry Practices
Automotive
Chemicals
Construction & Property Development
Consumer & Retail
Energy, Resources & Environment
Financial Services
Private Equity
Logistics & Transportation
Manufacturing & Industrial
Pharmaceuticals & Healthcare
Telecommunication, Technology & Media
Functional Practices
World Class Market Intelligence
MI for Strategic Planning
MI for Marketing & Sales
MI for Product & Innovation Management
MI for Supply Chain Management
M&A and Partnering
www.globalintelligence.com - page 37
Partner with us to understand, compete
and grow in international markets
We focus on helping you make the right decisions. Our customized approach is
embodied in GIA's Intelligence Partnership™ concept, a one-stop solution for all your
strategic market intelligence and advisory needs.
www.globalintelligence.com - page 38
Make better informed decisions with our
customized solutions
Developed by a team of market intelligence specialists, management consultants, industry
analysts and technology experts, our solutions are comprehensive and totally customized for
you.
Customized market monitoring solution to boost market
awareness and sharing of insights
Analytical insight and advisory, enabling you to compete more
effectively and grow into new opportunities
Valuable information about your markets and industry,
on-demand around the world
Robust and scalable software that enables full control of the
intelligence process
A suite of consulting services, events and online resources that
help you set up and develop world class intelligence programs
www.globalintelligence.com - page 39
Market Intelligence Landscape & GIA Positioning
Continuous Service
Information management
software
Market monitoring
Information
Content
• Industry analysts’ subscription
services
• Content aggregators and media /
web monitoring providers’
information feeds
• Internal content production GIA :a consultative full
GIA Intelligence
service
solution that
Partnership
caters to companies MI
content and program
• Strategy & marketing consulting support needs.
firms
• Industry analysts
• India based research outsourcing
vendors
• Expert network organizations
Research
and advisory
• Other CI software products
• Microsoft SharePoint for MI
content management
• Other custom-built intranet
solutions
MI Program
Support
• MI conference organizers
• CI consulting & training
firms
MI Best Practices
Projects
www.globalintelligence.com - page 40
Many growth-oriented international companies
view GIA as their trusted business partner
Automotive
Chemicals
Construction &
Property Development
Consumer & Retail
Energy, Resources
& Environment
Financial services
www.globalintelligence.com - page 41
Many growth-oriented international companies
view GIA as their trusted business partner
Private Equity
Logistics
& Transportation
Manufacturing
& Industrial
Pharmaceuticals
& Healthcare
Telecommunication,
Technology & Media
www.globalintelligence.com - page 42
Contact information
Please feel free to contact Global Intelligence Alliance (www.globalintelligence.com) if you have any
questions.
Johanna Haapanen
Consultant
+358 50 5366 888
johanna.haapanen@globalintelligence.com
Global Intelligence Alliance is a worldwide network of companies specializing in customized Market
Intelligence. Leveraging its global reach, the GIA provides international organizations with a single
source for customized Market Intelligence services and solutions. Our consultative expertise covers
continuous market monitoring, intelligence software, customized research and analysis, and
intelligence workshops.
www.globalintelligence.com - page 43