7 Ways To Identify Market Opportunities For a Business Growth
the return on investment will be reduced. It is recommended that you only pursue a few attractive business opportunities to improve your chances of achieving above-average sales growth. But how do you tell the difference between business prospects that are enticing and those that are a wild goose chase? The response is simple: market analysis!
According to Wikipedia, A market analysis studies the attractiveness and the dynamics of a special market within a special industry
Before investing in a new market, market analysis will help you assess its attractiveness. It entails gathering and evaluating information about the product/services and how they will perform in a new market. It assists you in determining the shopping preferences, needs, and buying power of your target customer. Finally, it explains how your potential rivals have influenced the industry in your target market, as well as how you can disrupt it to help your business. But, if that's the case, how does anyone assess business opportunities before diving in? So there you have it. You can hire analysts to conduct market research and analysis on your behalf, or you can use these six methods to find market opportunities on your own.
1. Concentrate more on your current clients.
It's possible that the new opportunity you're looking for is right in front of your eyes; your future buyers may be the same people you're already selling to. So, in addition to the things you offer, what other services or products do you think your current customers may require? What happens to those babies when they outgrow your goods, for example, if you specialize in baby products (pacifiers, monitors, wipes, toys, diapers, and grooming products, among other things)? Who dressed their mothers during their pregnancies before they were born? Answer those questions, and you'll learn about business prospects for goods that are similar to what you sell now, and that, when applied to your product offering, will be a good fit., can assist you in developing a new market for yourself.
2.Speak with Prospective customers.
Prospective customers. Inquire as to what prevented them from purchasing your product or service, and if a pattern emerges, determine whether it is a gap worth filling. But, and this is a big but, do your homework first. Just because there is a demand for something (whether small or large) does not mean it is feasible or profitable in the long run.
3.Observe the evolution of humanity.
Observe not only the consumers of your industry's products but also the items your competitors sell, as they may experience changes in their lives that change their purchasing patterns. Keep an eye out for changes and adapt accordingly. In China, for example, as the country's economy grows, consumer preferences are shifting toward luxury goods. So, is the spending and purchasing power of you and your competitors' customers increasing? If so, you have a new market opportunity right there.
4.Analysis of direct competitors
Taking customers from your competitor is completely legal. You should do it whenever you have the opportunity. Analyzing the competition will help you identify their strengths and weaknesses in their value proposition, which you can exploit. Ask yourself, of all the products that the market's existing players offer, which ones are struggling and why? Are there any gaps in their offerings that your products can fill? That could be the market opportunity you're looking for.
5. Investigate international markets.
You're probably having trouble finding market opportunities because you're concentrating too much on your local market. Cast your net beyond your domestic borders, looking for markets that may have the same needs as your local market. Look for markets where shoppers have the same purchasing power as your current market, if not more, and where the entry barriers aren't too high. The Chinese market is one international market that will never let you down. The country's economy is expanding, as is the locals' desire for Western brands. However, if you want to grow and capitalize on China's growing number of luxury consumers,
You will need to hire Chinese workers who are native to the area. Don't worry, you can simplify the hiring process by hiring through a China employer of record.
6. The Internet of Things /Social media
Unsolicited comments and feedback from social media like Facebook users can be invaluable to a visionary entrepreneur. They will tell you what they dislike about the products your industry provides, what changes they would like to see implemented, and why they import rather than buying locally. They will openly discuss their pain points, so all you have to do is look hard enough to see how you can repackage your products to address those pain points.
7. Expand your horizons.
This entails establishing new markets through the introduction of new products. You will benefit from a first-mover advantage if you are the first to cater to a need that other providers are unaware of and most likely a need that the target market was unaware of until you showed up. To make this a reality, you must be extremely creative and innovative. Furthermore, the risk of diversifying your product offering is high, so you must experiment first before launching the products.
Finally my Conclusion
Your job does not end with the identification of a potential market or market opportunity. It includes tailoring your social media, website, and offline campaigns to the newly discovered demographic. To establish a strong rapport that future competitors will struggle to infiltrate, strive to understand the values that matter to them and the languages that resonate best with them.