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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/market-analysis-215

This document breaks down Market Analysis into 7 phase:
1. Problem Understanding and Definition
2. Market Environment Analysis
3. Market Place Analysis
4. Supply Analysis
5. Demand Analysis
6. Summary of Trends and Outlook
7. Strategic Options and Recommendations

For each of the phase, the document evaluates relevant parameters. It discusses key probing questions related to the parameter, as well as the important benefits from proper analysis of each parameter.

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  • 1. Business Framework Market Analysis Framework This detailed 7-phase Market Analysis framework distills the various analyses of the Market, including the Market Place, Supply Side, and Demand Side. Problem understanding and definition Market environment Socio demo- graphic,cultural Economic Political and legal Technological Market Market place: Goods & Services Supply side Demand side4 53 Summary of trends and outlook Strategic options / Recommendations 1 2 6 7 Find our other documents at http://flevy.com/seller/learnppt
  • 2. 3 Contents • Market Analysis Framework • Market Analyses - Problem Understanding and Definition - Market Environment Analysis - Market Place Analysis - Supply Side Analysis - Demand Side Analysis • Market Analysis Conclusions - Trends Summary and Outlook - Strategic Options and Recommendations
  • 3. 5 At each step, there are a number of objects that can be analyzed—these objects can be broadly divided into ―Must haves‖ and ―Nice to haves‖ Framework Overview (2 of 3) • Defining the market and the study scope • Understanding the issues • Planning effectively • Socio-demographic • Economic • Political and legal • Technological • Trends • Market size development • Price development • Product and Services • Market place characteristics • Market force structure • Main drivers • Trends • Deal with the subject before kick-off • Related markets • Country specifics Market environment analysis Market place analysis Problem understanding and definition Musthave Niceto have 1 2 3 The development of the analysed parameters are the core of a market analysis and the resulting trends are its essence. Preparations Market analysis
  • 4. 7 Contents • Market Analysis Framework • Market Analyses - Problem Understanding and Definition - Market Environment Analysis - Market Place Analysis - Supply Side Analysis - Demand Side Analysis • Market Analysis Conclusions - Trends Summary and Outlook - Strategic Options and Recommendations
  • 5. 9 External factors can influence a market heavily – the analysis of the markets environment is therefore a crucial part of every market study Market Environment Analyses Object of analyses Questions to ask Parameters to analyze Output / benefit Socio- demographic and Cultural  How have the socio-demographic and cultural environments developed and how does this affect the analysed market?  What are socio-demographic key drivers relevant to analyzed market?  Socio-demographic data: Age, sex, nationality, household structure, mobility, etc.  Other parameters could be: Acceptance of new products, evolvement of new life styles, etc.  Key drivers  Developments of demography  Change of customer behaviour Economic  How has the economic environment developed and how does this affect the analysed market?  What are economic key drivers relevant to analyzed market?  Economic development  Per capita income  Work force potential and productivity  Exchange rates and inflation  Etc.  Key drivers  Developments of relevant economic factors Political and Legal  How has the political environment deve- loped and how does this affect the analysed market?  What are political and legal key drivers relevant to analyzed market?  Taxes and subsidies  Labour contracts  Import / export restrictions  Environmental conditions  Other laws and regulations  Key drivers  Developments of political and legal factors relevant to analysed market Technological  How has the technological environment developed and how does this affect the analysed market?  What are technological key drivers relevant to analyzed market?  Technical maturity of industry and pro- ducts  Potential new materials and processes  New / disruptive technologies  Etc.  Key drivers  Developments of technological factors relevant to analysed market
  • 6. 11 To fully understand a market, the analysis of power distribution and the deduction of main drivers are crucial Market Place Analyses (2 of 2) 1 The players (suppliers, producers and service providers, trade) that have many options to choose their business partners depend less on them and have a strong market position 2 If there are only a few players, they are often in a strong position because the switching possibilities are reduced 3 The players with the highest buying powers are usually the most powerful Object of analyses Questions to ask Parameters to analyze Output / benefit Power Structure  How is the power distributed between demand and supply?  Is the analysed market place buyer or seller driven?  Refer to appendix for framework to analyse demand/supply power distribution  Be in a position to decide whether to focus more on supply or demand side for further analysis Main Drivers  What are the main market drivers?  Unlimited number of parameters, for example: Economies of Scale, first mover advantage, research leadership, cost leadership, etc.  Be able to judge the market position of companies  Be able to focus on the market’s key issues for further analyses Must have
  • 7. 13 … and by the actions and relative strengths of the sellers Supply Side Analyses (2 of 2) Object of analyses Questions to ask Parameters to analyze Output / benefit Sellers  What are the overall market shares  What are the market shares per product or service category?  How was the market share development?  Market share overall  Market share per product or service category  Market shares of players  Market shares of players per product category  Market share development  How are the players composed? Are there mainly small, large, national, international players? Are there mainly private companies, or are there cooperatives?  Are players focused on the respective market or do they play in a number of other markets?  Composition of players by size, nationality, form of organization  Percentage of players which are only active in the respective market  Player characteristics  How are the most important players positioned in the market?  Positioning strategies (i.e. cost leadership, differentiation, focus)  Market positioning of players Must have
  • 8. 15 Contents • Market Analysis Framework • Market Analyses - Problem Understanding and Definition - Market Environment Analysis - Market Place Analysis - Supply Side Analysis - Demand Side Analysis • Market Analysis Conclusions - Trends Summary and Outlook - Strategic Options and Recommendations
  • 9. 17 The essence of a market analyses are recommendations based on strategic options Strategic Options and Recommendations Perspective / criteria Questions to ask Possible strategies Geography  Where do we want to play geographically?  Global  Global but adapt local  Regional  Local Growth  What is our growth perspective?  Expand  Hold  Consolidate  Shrink  Withdraw Integration  What is our approach towards integration?  Forward integration  Backward integration Cooperation  What is our approach towards cooperation?  Acquisition  Equity stake  Partnering  Independency Behaviour vs. Competitors  What is our behaviour towards competitors?  Aggressive  Neutral  Collaborative  Defensive Recommendations