Examine whether or not your
industry is growing, maturing or declining.
·
If it is declining, identify the
problems that exist and be able to change the ones you can. Show how you can
adapt to changes that you can't control.
·
If your industry is maturing,
show how as a new company, you may be able to better adapt to external forces;
better than the more mature competition.
·
In a newly emerging and growing
market (the best scenario), differentiate yourself from new competitors. Show
how you expect to become a major market share holder, using a new approach to
the marketplace and utilizing the latest technology. Identify the older methods
of generating your product/service being challenged by your business' approach.
·
Acknowledge the problems and
challenges of the marketplace you are entering. Use your analysis to construct
a strategy that will put you ahead of your competition.
·
Look to ways of prolonging the
"life" of your business if you recognize that what your getting into
is threatened by newly emerging technologies and business approaches. To
advance your business in the new economy means finding your "niche",
or, creating one of your own.
·
In your market analysis focus is
on key areas like industry wide sales performance. Acknowledge why sales (as a
whole) may be declining. Look to national and provincial averages, citing
reasons for poor performance. Reasons can be both external to a particular
businesses operations, or internal to the way the business operates. People
called "industry analysts" have developed a way of determining the
causes of business failures, focusing on the direction newly emerging business
can take to realize success. Reference these professionals.
·
Your focus should also turn to
the local scene, since local markets may or may not follow the greater industry
trend for various reasons. Compare the local situation to the national and
provincial averages; the trends in sales, and the estimated total market that
can be reached by local companies.
·
Recognize the position your local
competitors have taken in the local market; the clientele they serve, the
product they produce, the price they expect to charge for their products and
services.
·
Finally, relate your own
businesses position to the position of others, reflecting on the maturity and
experience of your business competitors.
Environmental
Analysis - Global Business Environment
Conduct an environmental analysis to look at and comment on the world in which you will be operating. Unemployment rates for the past 2 to 5 years and the impact it has had on sales and the overall customer base is an effective way of demonstrating the effect of "external" pressures onto your business. Threats due to environmental conditions (like unemployment, layoffs, recession, high interest rates) reduce consumer activity, and should be explored in your marketing plan.
Conduct an environmental analysis to look at and comment on the world in which you will be operating. Unemployment rates for the past 2 to 5 years and the impact it has had on sales and the overall customer base is an effective way of demonstrating the effect of "external" pressures onto your business. Threats due to environmental conditions (like unemployment, layoffs, recession, high interest rates) reduce consumer activity, and should be explored in your marketing plan.
Political
and Legal
·
Identify the regulations,
permits, insurance, liability, municipal zoning and taxation requirements that
you must follow in order to operate your business.
·
The business climate of your
town, village and surrounding area is an important influence on your day-to-day
operations. Reflect on topics such as taxation, zoning and other factors.
Demographics
·
Describe the population base that
exists to support your product. Identify the market size for your product, and
the people that make up your product/service's consumer group. Provide
information about:
·
Where they live, What products do
they buy, How much they spend on similar products each year,
·
Where they shop for these
products, etc. Indicate whether or not your product is geared towards a
specific age group, with spending patterns and consumer demands. Indicate
whether this group is shrinking, expanding or yet to be tapped into.
