These include 1) the bargaining power of suppliers, 2) the bargaining power of buyers, 3) the competitive rivalry, 4) the threat of substitute products, and 5) the threat of new entrants.
Bargaining Power of Suppliers The bargaining power of suppliers refers to how easy it is for your suppliers to increase their prices.
It also helps you reevaluate your current business plan and strategies so you can maximize business growth.
In other words, market analysis is the cornerstone of any successful business. At the same time, you need to discuss your market size so that you can have an overview of how profitable your target market will be.
Whether you own a small or big business for a short or long period of time, market analysis is important to ensure that you are staying on top of current market trends.
It gives you an in-depth perception of what drives demand, of what strategies your competitors are using, of what marketing techniques best fit your products and services, etcetera.
A competitive analysis is an important part of your marketing plan.
It can provide key insights into growth opportunities for your company.
You need to determine the number of your buyers and of their orders.
You also need to consider how much it will cost them to switch from your products and services to a rival's.