Opportunities existing in the market turn into profitable ventures as a result of a meticulous analysis of the current market as well as assessing and evaluating current trends in the market. An effective market analysis will enable an individual answer fundamental questions like, what the emerging trends in an industry are, what strengths and/or weaknesses do your competitors have, the suitability of your location, whether your concept fills a certain gap in the market and the potential customers one can serve in a year.
In order to identify opportunities and potential threats, one needs to study the dominant trends in the industry of his interest. The analysis entails scanning the environment for opportunities like a competitor’s failure/flaw, population increase leading to higher demand for your product, a market gap, among others. Threats include stiff competition, introduction of similar products and customer dissatisfaction. If one is swift in spotting opportunities and threats before others, he stands a better chance to expand their market share. This, in turn, stimulates your firm’s production, which could lead to increased profitability.
The next step towards finding opportunities is the rigorous assessment of the local market area. Here, one needs to use economic and demographic statistics to help them determine the sales potential that the market one is preparing to serve holds. These statistics ought to be compared with those from other regions so that the entrepreneur can assess the strength the market area possesses. Analyze your market area by first defining its geographic size. Secondly, obtain data on the demography of your cut out area. These include data on the age of most people in the area, their education level, gender as well as their level of income.
In most cases, there will be other firms who entered the market before one does. They are, therefore, sources of competition. However, from the synthesis of the content of what we covered in the first week, I understand that the same competitors could as well be rich sources of valuable information that could help one analyze market opportunities and demand. Finding opportunities also means assessing your competitor’s weaknesses and strengths as well as learning form their achievements and failures.
Acquiring new customers is one of the utmost delights that businesses boast of. Most business enterprises are more focused on the acquisition of new customers than working towards unlocking the value of the existing customers. It is surprising how many businesses fail to consider the existing customers as the most valuable assetsPreviously, I believed that real profits came from new customers because all businesses toiled to register new customers, regardless of their current customer base. However, after the discussion of the second week’s topic on customers and their value, I now realize that the business’ existing customers are the source of its real profits. Obtaining a new customer is far much costly than dealing with an existing one.
For a business to unlock the value of its customers, it must appreciate that customers are its most precious asset. They, therefore, ought to be treated the same way one treats gold. Issues that existing customers’ raise should be dealt with before those of prospective customers. Customers need to be provided with products of high quality that satisfy their needs. I have learnt that customers are a rich source of valuable information, if they are listened to and respected. When I start employing my entrepreneurial skills in the near future, I’ll listen and have respect for my customers. This will be so because I understand that this will enable me cut down on the cost of testing new products in the market.
Customers can be retained by use of exceptional customer service strategy. Personalizing responses regarding customer inquiries is also a powerful tool for cultivating customer loyalty and goodwill. This might be time-consuming, but the rewards of constant use of these tools are much far greater. In summary, customers are a business’ most valuable asset, and the more a business looks after its chief assets, the profitable it is likely to get.