Identify and select attractive Market Opportunities with a systematic Market Assessment
As an entrepreneur your most limited resources are time and capital. It is therefore in your interest to use these resources as efficiently as possible. A thorough and systematic market assessment will enable you to make substantiated strategic business decisions in the following four areas.
- Which customer need is worth solving?
- What is the best positioning for your business and offering in the market?
- Who are your ideal customers?
- What is your optimal go-to-market strategy?
A solid overview of the market and a deep understanding of your potential customers will help you to find answers to these questions. Identifying and selecting attractive market opportunities can significantly change the value of your company and save you time and money. We recommend that you update your market assessment at least annually so that you can adapt to changing market conditions early on without losing a competitive advantage.
Perform a thorough and systematic market assessment
A thorough and systematic market analysis takes into account both the bird's eye view and the worm's eye view of a market. The former provides you with an overview, while the latter takes into account the narrow understanding of the customer. Both together enable you to decide whether a business idea is worth pursuing and how it should be approached strategically. The following list gives you an overview of the topics covered in each market view, before we move on to the details in the next section.
- Market size
- Expected growth rate
- Competitive intensity
- Customer need
- Buyer decision
- Customer interviews
- Expert interviews
The Bird’s Eye View on the Market
A bird's eye view of the market shows the market size, expected growth rate, trends, market dynamics and the competitive strengths and weaknesses of your relevant competitors. On the basis of this information you can derive an attractive market positioning for your company and your offering.
The Worm’s Eye View on the Market
Assessing the market from a worm's-eye perspective provides detailed information on why and where customer needs emerge, how purchase decisions are made and which parties are involved. Interviews with customers and experts conclude the systematic market assessment with a test of all the hypotheses established in the market analysis. The results enable us to select suitable target customers and develop an effective go-to-market strategy.