Trend is basically a premonition of future development that will have a long lasting effect and will change something. Market trend is anything that changes the market in which an organization operates. Organizations who keep up with the market trends are successful.
Market trends experience ongoing changes. Change is the only thing that is constant in market trends, which can be attributed to digitalization. Change brings both risks and opportunities. In order to stay ahead of curve and avoid competitors passing you by an organization needs to change according to the trends for the benefit of long-term business planning.
Trends have different effects on different industries. Many trends can be missed at first glance by only taking into account the generic aspects of market and growth. Take Blackberry for instance, Blackberry focused on corporate market and improvements to handheld features. It overlooked the consumer market where the apps availability quickly grew as a top priority for mobile phone users. It happened because of Blackberry’s huge reliance on macroeconomic data.
To gain opportunities from the market trends, companies should keep experimenting by turning ideas into minimum viable products or services to determine how the market and consumers respond. An example of this is the rise of organizations such as Uber or Airbnb. Such companies basically perceived in advance that the consumer sentiments are shifting towards a more personalized approach and they created their innovative business model around this trend.
Identifying opportunities by market trend analysis
The constant instability in the trends make it necessary to seek new business opportunities from the changing trends. Identifying the market opportunities from ever changing market trends has become more essential than ever because the advancement in technologies have made the process of market change even faster.
To capture the opportunities created by market trend, it is necessary to define a framework. While defining a framework to capture business opportunities, it is necessary to understand an organization’s business direction and have knowledge of the resources, strengths and capabilities. The next step is market research. Market research will help in accessing the consumer needs and will also give an insight about how the consumer needs are meet by the companies today. The entire business model must be analyzed to capture business opportunities.
Below are the different analysis types to identify market opportunities.
- Consumer Segmentation
Identify different consumer segments that share common characteristics this will help in understanding the demand of a specific service or product. The common consumer characteristics that should be analyzed are age, gender, location, education, occupation, lifestyle, attitude, buying motivation and values. This analysis will also help in understanding potential number and type of consumers.
- Purchase Situation
Purchase Situation analysis uncovers business expansion opportunities by providing insights about when consumer needs a specific product or service, how do consumers buy a product or service.
- Competitors Analysis
Having knowledge of the competitors will help in understanding how they are meeting the consumer’s needs. This will help in improving the product or services and also tailor it to better meet the consumer requirements.
- Environment Analysis
Changing environment creates several market opportunities. Technological and scientific advances are generating new business opportunities everyday e.g. nowadays, employers post job online instead of following the lengthy recruitment processes to find the right employee. Online job portals can take advantage of this trend and attract more audience by providing personalized and user-friendly experience to both employee and employers.
Trends change markets on a daily basis, whether they are ready or not. Consistently evolving an organization alongside market trends will help keeping an organization competitive and alive in the industry.