First, you need to define a framework to help search for opportunities. To do this, it is necessary to understand your company’s business direction and to have knowledge of the resources, strengths and capabilities of your company.
Once you have a good understanding of company goals and areas of expertise, the next step is to analyse the market, assessing consumer needs and how they are being met by companies today. In order to identify market opportunities, the business model as a whole must be evaluated by identifying consumers and companies and other factors such as brand value propositions, direct and indirect competitors, supply chains, existing regulations and the general environment.
Let’s examine how to analyse these factors in detail below.
1. Consumer segmentation
To understand your demand, you must identify consumer segments that share common characteristics.
These characteristics can be “hard” variables such as age, gender, place of residence, educational level, occupation and level of income or “soft” variables such as lifestyle, attitude, values and purchasing motivations.
Hard variables can help estimate the number of potential customers a business can have. For example, a nappies/diapers producer should know how many children under 3 years live in a certain country as well as the birth rate. Soft variables can help identify motivations that lead to purchasing decisions including price, prestige, convenience, durability and design.
2. Purchase situation analysis
Purchase situations must also be examined to uncover expansion opportunities.
Questions to ask when reviewing purchase analysis are:
3. Direct competition analysis
In addition to analysing demand and purchasing situations, it is important to analyse supply.
Knowing the existing players in the market where you are competing or going to compete is important when evaluating opportunities.
Relevant questions in this case are:
4. Indirect competition analysis
Opportunities can also be found by analysing substitute industries.. This type of analysis helps establish competitive advantages against indirect competitors and provide insight on additional opportunities for growth. Are government schools improving?
5. Analysis of complementary products and services
Schools should monitor the performance of other schools, which are complementary to their own.
Trends in complementary markets should be taken into account when making investment decisions.
Analysis of other industries
In some cases, the objective of schools is not to continue operating within an industrial sector but to expand a certain business model or philosophy.
In any case, to enter a new industry it is important to learn about competition first: market sizes, market shares, growth rates, unit prices, per capita sales and brands positioning.
Market opportunities can also be identified by analysing changes in the environment with technological and scientific developments generating new business opportunities.
For example, the growth of the Internet and smartphones’ penetration has enabled the arrival of companies with new business models
Changes in a country’s regulatory framework can also create opportunities.
Other transformations in the environment such as climate change, geopolitical movements and changes in financial markets also influence market opportunities.
It is imperative to consider using market research to gain insight on the local business environment; ensuring that your strategy will flourish in a new or developing marketplace.
Consumer segmentation, purchasing decisions, direct and indirect competitors, complementary products and services, industry, foreign markets and environmental analysis are the eight types of analysis that will help your organization identify new market opportunities.
Using a variety of analysis will help your School gain a holistic view of opportunities and help create long-term strategic business plans.
Once opportunities are identified, schools must move quickly to create a plan. It is necessary to develop a value proposition, plan the commercialization chain and estimate costs, revenues, cash flows and financing needs.
Not all market opportunities identified will succeed but experimenting will give answers on the potential of each.
We help analyse direct and indirect competitors, complementary products and services, diverse industries
Our team of analysts focuses on demand and competitive analysis and can provide strategic insights that will help you with your market strategy.