Entrepreneurs can see market downturns in two ways. Most business owners see it as a sign that they should “batten the hatches” and secure their investment. Less risk-averse entrepreneurs see a market downturn as an avenue to new opportunities. Entrepreneurs, start-up companies, and SMEs can take advantage of an accelerator programme in Singapore and foreign markets. However, they should determine various market opportunities and learn methods to take advantage of them.
This article outlines six ways to identify market opportunities for business growth. It is necessary to understand your business direction and the resources, strengths and capabilities.
Method #1: Consumer Segmentation
Customer segmentation analysis enables marketers to identify discrete groups of customers. It is vital to understand how each marketing effort will affect the client and company expansion ahead of time. Customers are classified based on their long-term customer lifetime value (CLV).
Accurate consumer segmentation necessitates the tracking of dynamic changes and continuous data updates. Some of the most frequent forms include cluster analysis segmentation, RFM segmentation, and longevity segmentation. Marketers may then combine several tiers from different models to create more defined groupings. A segment of newly acquired consumers puts the highest group of customers based on an RFM model with a low lifetime tier.
Method #2: Purchase Situation Analysis
A situation analysis is a vital component of any company strategy for expansion and should be under regular scrutiny. It is a beneficial tool for assessing the health of your organisation when done correctly. Once you understand how your company performs, you may devise appropriate plans to assure its future success.
To assess whether your situation analysis is useful and valuable in taking advantage of market opportunities, it should:
- Be straightforward to use;
- Focus on essential aspects affecting your organisation, both internally and outside;
- Clearly outline future goals for your firm;
- Spark more investigation.
When contemplating doing a scenario analysis of your firm, it is critical to examine the following factors:
- The situation with the product.
- The position of your competition.
- The status with the distribution.
- Environmental considerations.
- Analysis of opportunities and issues.
Method #3: Competition or Competitor Analysis
Knowing your direct and indirect competition can provide you with market opportunities to improve your campaigns and reach new audiences. Learning about your competitors and their products can provide you with market opportunities beyond your imagination.
Direct competition occurs when at least two enterprises or businesses offer virtually the same products or services and compete for prospective clients. As a result, a direct rival is any corporation, person, or organisation in a similar line of activity.
Indirect competition occurs when two firms produce slightly different items yet target the same clients. We can also use the phrase to refer to service providers. The indirect competition targets the same client base to satisfy their demands.
Comparing businesses provides you with real-world knowledge and a strategy for defeating your immediate competitors for better market opportunities. E-commerce businesses can be direct competitors for a physical establishment, while another shop two miles away may not be. You need to evaluate the value your products bring when you start losing clients.
Method #4: Complementary Product and Services Analysis
People use complementary products in conjunction with another essential or allied product. For example, lowering the price of one thing leads to better demand for both products. Similarly, if the price of other goods falls, the request for that complementary commodity also falls. A complementary Service comes with a product to assist. They are the services that add to the offer of any firm. Taking inventory of complementary products and services can also offer you better market opportunities that present competitive advantages.
Method #5: Foreign Market Analysis
Businesses’ core aims are to increase their market share, sales, opportunities and profits. They frequently achieve these objectives by entering new markets or launching new items into current ones. The capacity of a corporation to accomplish this effectively is dependent on its grasp of a specific geographical or product market.
Assessing alternative overseas markets entails weighing the costs, advantages, and risks of entering each. Managers evaluating international markets must also consider socio-cultural factors. It is sometimes difficult to measure due to their subjective character. An example is starting a business in Germany. You can seek help from expert consulting firms for better data.
A company may decide to avoid exporting its goods to a nation with high tariffs and other trade restrictions favouring one with fewer or less substantial barriers. Other aspects to examine include the firm’s worldwide strategy, the necessity for control, and the availability of resources.
Method #6: Environmental Analysis
Environmental analysis is a procedure that identifies all external and internal components that might impact an organisation’s performance and company expansion. The analysis comprises determining the threat or opportunity presented by the factors.
PESTLE analysis includes several aspects that influence the business environment. The acronyms STEP, STEEP, STEEPLE, STEEPLED, and LEPEST all refer to the same collection of elements. Economic variables are all of the things that influence the economy and its status.
These are the elements that can determine the direction of the economy. Every country has its way of thinking, and these beliefs influence enterprises. Social issues can also impact product and service sales in the long run. An environmental analysis can assist you in staying current with technological advances. You can investigate elements, such as geographical location, climate and weather, and people’s attitudes toward the environment.
Environmental analysis is critical. It aids in determining the influence various elements have on your organisation and market opportunities. PEST or PESTLE analysis enables firms to examine external components. Many businesses utilise these tools to protect their company development and expansion.
Scaler8 is a reputable market and company expansion consultant in Singapore. Entrepreneurs and SMEs can successfully enter the German market with an acceleration programme. Scaler8 provides customised services with support from German entrepreneurship. It is a significant provider of innovative services with solid connections and competence in Germany and Asia.
Work with Scaler8 to obtain the most reliable market expansion plan. They can also help you take advantage of an accelerator programme in Singapore.