One of the most crucial aspects of any business is to perform industry analysis. It is so paramount to success that a lack of industry analysis can be attributed to business failure. You need to know what is going to sell, where it will sell, how it will sell etc. In effect, you need to know how to perform industry analysis.
So what are some of the aspects that you need to perform industry analysis? First, you need to know where to find the data. Trade publications, your local library, local and regional government offices can all be great resources. Of course there is the internet too. But you must really take care when obtaining information from the internet to ensure that it is fact checked. Don't just rely on any information from there.
So what are some of the aspects that you'll want to focus on to perform industry analysis? The most important ingredient is to know your target audience. Are they male or female or both? Do they fall within a certain age group? Do they live in a particular geographic area that is more conducive to your product or service? This is known as demographic trends and much of the information can be extracted from the census of your government.
Another closely related aspect to perform industry analysis for is the demand of the products or statistics for the industry. Are people clamoring over trying to buy your product or has it fizzled out? What kind of historical trends have you seen and are they seasonal, etc? How heavy is the competition and if it is not yet so, how easy is it for others to get in on this product or service, also known as the barriers to entry?
Other areas to perform industry analysis on are cross promotions. For instance, if you have a product within the medical field you could cross promote with the insurance industry, etc. The more easy you make it for your customer to get everything they are looking for, the better. Create a rich experience for them by thinking about products or services that you would want to have access to if you were shopping.
You can also work with companies that are related to you but don't directly compete with you. For instance, suppose you have a investment site where you sell investment reports and research. You could work with a company that has a stock quote widget that you could display on your web site. The possibilities are endless for these kinds of cooperative ventures. When you perform industry analysis you will get to the heart of these and more.
The last aspect to perform industry analysis is to determine what kind of support you are going to offer for your product. If you don't already have something set up for this, consider outsourcing it. Again, do some research and speak with companies that are geared toward handling this.
All these aspects to perform industry analysis will set you on your way to knowing what products should sell, where, and to whom. You will have a leg up on many of your competitors because people do not typically do this kind of research for their businesses.
This article describes the hard way to perform industry research. If you want an absolutely easy way to do it, you should learn about NICHEQ. This does all the work for you.
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