Understanding Your Place in the Market
We have seen a number of businesses that seemed promising in the beginning only to see it suffer a bitter ending. We may even have been one of those who had big hopes for our businesses, even if it’s a home-based small business for instance; only to experience its painful demise, much to our bewilderment.
Carefully analyzing your place in the market is the first step in preventing the untimely death of your business. From these analyses, we can already come-up with several business strategies to create a niche for ourselves in the market.
When considering strengths in the market, we can study this in two ways: our strength in the market; and the strengths of the market itself. Do not confuse one with the other. Our strengths in the market means our edge over our competitors. Strengths of the market targets on who our market is.
What do we have that they don’t? This could be our products, a good marketing strategy, our location, excellent customer service and any other company strength that we can rely on to deliver the goods, in a manner of speaking.
When we talk about the strengths of our market, we focus on their purchasing ability, their comprehension and recognition. We also consider their standing in the social echelon.
As in strengths, we can also look at weaknesses in two ways: ours and our market’s. Let’s first consider our weaknesses. How come we haven’t been producing as much as we hoped we would? This could be a lack of manpower skills, shortage in raw materials and resources, or even outdated equipment.
Have we been keeping up with the changing times? There are much technological advancement that we can fully utilize to help our business. The internet, for instance, can expose us to our target audience without having to spend too much on advertising. It can also provide us with excellent communications tools for our business partners and suppliers overseas.
Location is another key factor. Can our market reach us without much trouble? Are we easily accessible to our targeted audience? Efficiency is next; plus a lot of other factors that could be hampering the growth of our business.
As for the weaknesses of our market; what is it that they need? If we create something that will fill in whatever it is that they are lacking, we have created something that will answer this need.
We should be specific about the demographics of our market when targeting their need/s to enable us to give them something that they can afford and at the same time appreciate.