Market analysis

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  • Try to get students to give examples from Corporate Adviser for each of these areas. May be able to get a discussion going???? Hubbard has extended the usefulness of the balanced scorecard approach by adding the extra dimensions of strategic position, and organisation type. >>>>>>>>>>>>>>>>>>>>>>>
  • Market analysis

    1. 1. External Analysis: 3. Market Analysis <ul><li>Industries are not markets </li></ul><ul><ul><li>industry : a group of organisations or business units producing close substitutes </li></ul></ul><ul><ul><li>market : a group of consumers with similar needs </li></ul></ul><ul><ul><li>market segment : a relatively homogenous group of customers who will respond to a marketing mix in a similar way </li></ul></ul>
    2. 2. Market Analysis <ul><li>Understanding Customers </li></ul><ul><ul><li>Who are the key customers? </li></ul></ul><ul><ul><li>Why do they buy the product? </li></ul></ul><ul><ul><ul><li>use of product </li></ul></ul></ul><ul><ul><ul><li>benefits </li></ul></ul></ul><ul><ul><ul><li>features </li></ul></ul></ul><ul><ul><ul><li>purchase triggers </li></ul></ul></ul>
    3. 3. Key Market Analysis Questions <ul><li>What is the growth rate of the market? </li></ul><ul><li>What size are the key segments? </li></ul><ul><li>How diverse is the market? </li></ul><ul><li>Does the market fluctuate? </li></ul><ul><li>How sensitive to cost variations? </li></ul><ul><li>What is a viable level of business? </li></ul><ul><li>What is the buyer decision process? </li></ul><ul><li>What are the pricing mechanisms? </li></ul>
    4. 4. Making industry analysis more dynamic <ul><li>Current theory aims to better predict the dynamics of an industry. </li></ul><ul><ul><li>In simple terms, industries are dynamic because a strategic change by any player may lead to a strategic response by other players. </li></ul></ul><ul><ul><li>E.g. Woolworths supermarkets introduce petrol discounts linked to grocery expenditure and Coles also sells petrol. </li></ul></ul><ul><li>Externally, PEST shifts can be used to predict changes in the industry structure. </li></ul>
    5. 5. Predicting the future <ul><li>PEST analysis (political economic, social, technological) </li></ul><ul><li>Leading indicators change. </li></ul><ul><li>Generation of trends from historical patterns (e.g. market share over the last three years etc). </li></ul>
    6. 6. Example of a balanced scorecard <ul><li>Financial Perspective </li></ul><ul><li>Shareholder return </li></ul><ul><li>Cash flow </li></ul><ul><li>Major customer profitability </li></ul><ul><li>Profit forecast reliability </li></ul><ul><li>Sales backlog </li></ul><ul><li>Customer perspective </li></ul><ul><li>Relative pricing index </li></ul><ul><li>Customer ranking survey </li></ul><ul><li>Customer satisfaction index </li></ul><ul><li>Market share </li></ul><ul><li>Innovation and Learning Perspective </li></ul><ul><li>% revenue from new services </li></ul><ul><li>Rate of improvement index </li></ul><ul><li>Staff attitude survey </li></ul><ul><li>No. of employee suggestions </li></ul><ul><li>Internal Business Perspective </li></ul><ul><li>Hours with customers on new work </li></ul><ul><li>Revenue per employee </li></ul><ul><li>Returns </li></ul><ul><li>Safety incident index </li></ul><ul><li>Order-delivery cycle </li></ul>

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