Market Analysis

Market Analysis

The goal of a market analysis is 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.

David A. Aaker outlined the following dimensions of a market analysis:

• Market size (current and future)
• Market growth rate
• Market profitability
• Industry cost structure
• Distribution channels
• Market trends
• Key success factors

Market Size

The size of the market can be evaluated based on present sales and on potential sales if the use of the product were expanded. The following are some information sources for determining market size:

• government data
• trade associations
• financial data from major players
• customer surveys

Market Growth Rate

A simple means of forecasting the market growth rate is to extrapolate 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. Such drivers serve as leading indicators that are more accurate than simply extrapolating historical data.

Important inflection points in the market growth rate sometimes can be predicted by constructing a product diffusion curve. The shape of the curve can be estimated by studying the characteristics of the adoption rate of a similar product in the past.

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, a decrease in brand loyalty, the emergence of substitute products, market saturation, and the lack of growth drivers.

Market Profitability

While different firms in a 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. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. This framework, known as Porter's five forces, identifies five factors that influence the market profitability:

• Buyer power
• Supplier power
• Barriers to entry
• Threat of substitute products
• Rivalry among firms in the industry

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 determining where value is added and for isolating the costs.

The cost structure also is helpful for formulating strategies to develop a competitive advantage. For example, in some environments the experience curve effect can be used to develop a cost advantage over competitors.

Distribution Channels

The following aspects of the distribution system are useful in a market analysis:

• Existing distribution channels - can be described by how direct they are to the customer.
• Trends and emerging channels - new channels can offer the opportunity to develop a competitive advantage.
• Channel power structure - for example, in the case of a product having little brand equity, retailers have negotiating power over manufacturers and can capture more margin.

Market Trends

Changes in the market are important because they often are the source of new opportunities and threats. The relevant trends are industry-dependent, but some examples include changes in price sensitivity, demand for variety, and level of emphasis on service and support. Regional trends also may be relevant.

Key Success Factors

The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives. A few examples of such factors include:

• Access to essential unique resources
• Ability to achieve economies of scale
• Access to distribution channels
• Technological progress

It is important to consider that key success factors may change over time, especially as the product progresses through its life cycle.

retail oppurtunity

The top 10 opportunities for retail sector

1. Rising emerging market demand and rise of global middle class
   The size of the global middle class is expected to triple between now and 2030. Yet 29% of retail sector respondents to our global survey reported that their efforts to enter these markets had yet to produce any positive results.



2. New marketing channels and social media
   Across the world, the number of people with regular access to the internet has increased dramatically. The retailers we surveyed were relatively likely to report that their company had at least begun to engage with social media — 28% said so, and a further 28% said social media was actively being investigated.



3. Competitive differentiation via CSR and green branding
   The global financial crisis, instead of shifting focus away from corporate social responsibility (CSR), seems to have made it more of a priority. Almost three in four companies in the retail sector consider CSR “as a must.”



4. Multichannel approach
   The growth of e-commerce and m-commerce, and recent rapid shifts in consumer behavior, have increased the benefits for retailers that can stay in touch with consumers through multiple channels.



5. Demographic change
   Demographic changes — aging and migration, for example — are leading to rapid growth in specific market segments. Individuals in developed countries are increasingly seeking to deny the aging process.



6. Private label
   The recent recession has increased sales of private label goods, and many consumers report they will remain loyal to these brands. Retailers have embraced this opportunity by introducing tiered brands for different income brackets and shopper needs.



7. Launching new products and services
   Consumer behavior is changing, and constant innovation of products and services from retailers is required as a result. Yet 23% of the retail executives in our survey mentioned that their organization has not been innovative enough.



8. Global urbanization
   As one panelist said, “The world’s population is undergoing a historic shift from rural to urban.” Higher consumer incomes and increased customer concentration will present considerable opportunities for the retail sector.



9. Competitive differentiation via local branding
   There are significant benefits to local sourcing of products; they are often healthier, fresher and more environmentally friendly. As one retail executive commented, “[T]here is a growing trend toward ‘solidarity’ with local regions that can provide brands with lots of consumer kudos.”



10. Enhancing efficiency in the supply chain
    The supply chain presents a significant opportunity for retailers to reduce inefficiencies and compete on cost, which is increasingly crucial as companies in low-growth consumer markets battle for market share.

Opportunity ladder

The opportunity ladder presents a snapshot of the top 10 opportunities for the retail sector.

The ladder is divided into four sections, each representing the four drivers of competitive success identified in our Competing for growth research. Although this study focuses on corporate performance, there are still interesting comparisons and parallels to be made that are relevant for the retail sector.

Opportunity ladder

• Customer reach — to optimize their potential market
• Operational agility — to maximize their effective response
• Cost competitiveness — to optimize their profitability
• Stakeholder confidence — to secure both talent and support for achieving their goals

Top of the Ladder: The opportunities at the top of the ladder are those that the commentators we interviewed thought would have the greatest impact on retail sector bodies’ performance in the years ahead.

Arrows: Arrows indicate whether the commentators thought the potential performance impact of the opportunity would rise or decline by 2013.

10 retail risk

The top 10 risks for retail sector

1. Low-growth consumer markets
   Despite growth returning to the world economy following the recession of the last three years, this risk remains significant. The recession underlined a structural shift to a low-demand growth environment in the developed world: retailing in Europe is “a zero-sum game where a player’s gain is another’s loss.”


2. Regulation and compliance
   Traditional regulatory interactions centered on the rate case are being supplemented by often-contradictory pressures regarding environmental impact, efficiency and security of key infrastructure.


3. Inability to control costs/rising input prices
   As an economist we interviewed noted, “Low margins mean that costs [have] major effects on profitability.” Seventy-three percent of retail respondents had focused on cutting sales, general and administrative (SG&A) expenses, while 11% had targeted costs of goods and services (COGS).


4. Inability to benefit from e-commerce
   The objective of lowering carbon emissions from power generation continues to drive the transformation in the industry, but the failure of governments to meet key emissions objectives means that policy is at a crossroads. Market-based approaches to carbon pricing are losing out to direct regulation of emissions.


5. Wrong price image
   Price image can often be more important in determining sales than actual product prices. Adjusting complex pricing and branding strategies to adapt to trends such as shifting consumer behavior is therefore a constant challenge.


6. Supply chain disruptions
   Recent “black swan” events have highlighted the vulnerability to supply chain disruptions of companies in both the developed world and in emerging markets. Some companies may elect to reverse some cost saving procedures to attain more supply chain control and flexibility.


7. Inability to penetrate emerging markets
   “Especially for Western companies, understanding emerging markets is an undeniable (but blatantly obvious) opportunity,” as one retail panelist noted. However, in order for foreign retailers to operate efficiently in emerging markets, they need to achieve a critical mass in terms of stores and revenues.


8. Failure to respond to shifting consumer behavior
   During the recent recession, consumers reduced consumption, cut back on lavish and impulsive shopping behavior, and increasingly used online price-comparison sites. This change in behavior may be so far off the trend line that a return to pre-recession consumption patterns may no longer be realistic.


9. Sourcing
   In a less globalized world in which all retailers in a market tended to source their products from the same country, sudden location-specific risks had little impact on the relative competitiveness of market players. However, in a globally diverse market where retailers tap into different geographical locations, sourcing risks can have large impacts on costs, profitability and market position.


10. Volatility in commercial real estate markets
    Retailers are impacted both directly and indirectly by real estate market volatility. In addition, retailers need to stay ahead of real estate trends, such as the demand for commercial real estate shifting toward more dynamic, smarter, greener facilities.

Risks on the radar for retail sector

Our risk radar is a simple device that allows us to present a snapshot of the top 10 risks in the retail sector as listed above. The radar is divided into four sections that correspond to the EY Risk Universe™ model are follows:

Sector risk radar

• Compliance threats: originate in politics, law, regulation or corporate governance.
• Financial threats: stem from volatility in markets and the real economy.
• Strategic threats: are related to customers, competitors and investors.
• Operational threats: affect the processes, systems, people and overall value chain of a business.

Center of the Radar Risks: those that the commentators we interviewed, on average, thought posed the greatest challenge to the retail sector in the years ahead.

Arrows: Arrows indicate whether the commentators surveyed thought the risk would rise or fall in importance by 2013.

Peperangan Ekonomi

Persaingan bagi golongan bumiputra dalam sektor ekonomi bukan sesuatu yang senang untuk di ungkap. Kadar survival bagi sesetengan peniaga bumiputra bergantung kepada sejauh mana kebijakan dan kebersamaan mereka dalam satu pasukan .

Umum mengambil cina sebagai kayu pengukur dalam membanding bezakan bagaimana orang melayu berniaga . Ketiadaan kesepakatan kalangan bangsa melayu menjadikan usaha menyatukan ahli perniagaan bumiputra suatu yang tidak dilihat penting ..Merungkai permasalahan ini tiada kesudahannya...merenung jauh daku tercari-cari mengapa ini terjadi???

Rata-rata blog mengulas bab sikap dan semangat orang melayu. Jika benar dipandu pada lorongnya, masalah sikap akan mampu diubati sedikit demi sedikit. Kita wajar memfokuskan kepada generasi muda. generasi orang lama sukar dibentuk kerana mereka punya acuan sendiri mengikut zaman mereka.

Beberapa gagasan cadangan wajar diketengahkan agar suatu bentuk tindakan bersifat konkrit terlaksana secara teknologi anai-anai--perlahan-lahan akhirnya runtuh semua dikoreknya. Para pemikir usahawan muda ayuh bangkit dari sikap malas dan berharap disuap. ilmu yang ada sungguh jika di manfaat mampu menjana ekonomi yang jauh lebih hebat ..aptah lagi berteras keimanan dan ketaqwaan ....beberapa persoalan dan lambungan awal untuk dikongsi..

1.Perlukah mereka menubuhkan persatuan yang benar-benar kukuh agar masalah mereka dapat diatasi secara kolektif dalam kalangan jaringan perniagaan mereka ..?

2. dari situ wajib ada visi dan misi yang jelas kemana hala tuju persatuan yang nak dibawa ? disamping memfokuskan plan cadangan /perkongsian survival perniagaan ahli persatuan .

3. Proses penerapan kepada masyarakat akan kesedaran memecah monopoli peniaga asing bagi mengangkat kembali ekonomi ummah sesuai pada tempatnya.

4. menjadikan hasil akhirnya untuk ummah kembali kerana perniagaan ini berteras menjaga hubungan dengan ALLAH dan Sesama manusia.

5.Pelan jangka 5 tahun perlu dinilai dan dilihat kembali hasilnya kepada masyarakat . Sejauh mana kesannya kepada peniaga asing , APAKAH kita menguasai sektor pengeluaran dan bahan asasi ???

6. Kita tidak boleh bergantung kepada kerajaan atau kepartian . Proses membantu dari kerajaan mestilah tanpa sebarang prasyarat yang akan melemahkan organisasi akibat ketamakan dan kebodohan ahli politik yang tiada matlamat dan jiwa besar membangun ummah .

7.Pendidikan dan perkongsian dengan memberikan kurusus dan pendedahan bagaimana melakukan promosi dan marketing sepatutnya dikongsikan . Bukan setakat untuk kegunaan sendiri ...

8. para peniaga berjaya sewajarnya mencipta lagi 5 apperentice di bawahnya...demi memacu visi dan misi kita yang besar ini.

9. tema kita bangun dari jatuh yang banyak kali .kerana kesakitan jatuh itulah ujian dan ilmu yang berguna di masa depan.

Boleh layari:

http://tekok-beriuh.blogspot.com/2013/05/kenapa-cina-lebih-maju-daripada-melayu.html
boleh layari

sentiasa NAFI dan ISBAT dalam dua nafasmu

PERMATA NAN INDAH  ini di KONGSI dari ihsan dan cinta EMPUNYA BLOG http://walidalmalik.blogspot.com/2013/06/nafi-dan-isbat.html

Nafi dan isbat

hendaklah disandingkan
dalam setiap nafasmu
dalam setiap langkahmu

Nafi dan Isbat
adalah kalimah yang paling utama
adalah kalimah pembuka
rahsia sang hamba dengan TuhanNya

Nafi dan isbat
menafikan wujud yang lain
hanya isbat pada wujud Allah yang hakiki
wujud yang lain hanyalah bayang yang menunjukkan wujudNya
maka wajib bagi dirimu
memandang wujudmu adalah menunjukkan kepada wujudNya
jika kamu memandang wujudmu
tanpa kamu nafikan tiada akan wujudmu
dan tiada mengisbatkan wujud Allah yang mewujudkanmu
maka kufurlah iktikadmu, hancurlah amal Islammu

Nafi dan Isbat
menafikan akan segala sifat ketuhanan yang ada padamu
melihat, mendengar, berkalam, berilmu, berkudrat, beriradah dan hayat
hanya diisbatkan segala sifat itu hak Allah jua
maka padamu segala sifat kehambaan dan kekurangan
buta, tuli, bisu, jahil, lemah, tiada kehendak dan mati
maka jika kamu iktikaqkan segala sifat tersebut
tanpa kamu nafikan milikmu, dan tiada kamu isbatkan adalah hak Allah
maka kufurlah kamu, maka binasalah segala amalmu

Nafi dan Isbat
menafikan akan segala Asma’ yang ada
hanya Allah pemilik segala Asma’ yang indah dan hebat
tiada yang memberi rezeki, tiada yang menyembuhkan, tiada yang hebat,
tiada yang mudharatkan, tiada yang memiliki kemuliaan dan pelbagai namanya
melainkan hanya diisbatkan pada Allah sahaja yang memilkinya
jika engkau tiada mengiktikadkan disebalik kehidupan mu
bahawa nama nama Allah yang mengaturmu untuk mengujimu
dalam pelbagai bentuk dan wajah
maka zindiklah kamu dan tiada manfaat akan segala ibadahmu

Nafi dan Isbat
menafikan segala apa jua perbuatan yang ada
walaupun satu zarah debu yang berterbangan
dalam segala gerak dan diam
melainkan diisbatkan hanya Allah yang memilkinya
jika engkau tiada nafikan segala perbuatan itu
adalah milik kekuasaan dirimu dan makhluk
maka binasalah tauhidmu dan batal segala agamamu

Maka dalamilah akan pelajaran Nafi dan Isbat
dengan para murabbi tareqah sufiah yang haq
sebagai pintu utama kebenaranmu dengan Tuhan
sebagai pintu utama kebenaranmu dengan Rasul
tanpa pintu kebenaran ini
maka amalmu penuh kerosakkan
kelakuan Islammu penuh kemunafikan…
engkau hanya Islam di sisi manusia…
tapi Islammu belum benar di sisi Allah…