MARKETANALYSIS汇.pptVIP

MARKET ANALYSIS Learning Objectives: Describe the goal of market analysis. Enumerate and classify the different dimensions of market analysis. Discuss the dimensions of market analysis and relate them to personal experiences and/or observations. Illustrate the value chain and experience curve. Goal of Market Analysis To determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm. Dimensions of Market Analysis (David A. Aaker) Market size (current and future) Market growth rate Market profitability Industry cost structure Distribution channel Market trends Key success factors Market Size The size of the market can be evaluated based on: Present sales Potential sales (if expanded) Some information sources for determining market size: Government data Trade associations Financial data from major players Customer survey Market Growth Rate A simple means of forecasting the market growth rate is to extrapolate (infer or estimate) historical data into the future. While this method may provide a first-order estimate, it does not predict important turning points. A better method is to study growth drivers such as demographic information and sales growth in complementary products. Ultimately, the maturity and decline stages of the product life cycle will be reached. Some leading indicators of the decline phase include: Price pressure caused by competition Decrease in brand loyalty Emergence of substitute products Market saturation Lack of growth drivers Market Profitability While different firms in the market will have different levels of profitability, the average profit potential for a market can be used as a guideline for knowing how difficult it is to make money in the market. Porter’s Five Competitive Forces Industry Cost Structure The cost structure is important for identifying key factors for success. To this end, Porter’s value chain model is useful for determi