New Opportunities Concept – Green Pushpin on a Map Background with Selective Focus.
In today’s business environment, sustaining growth and profitability is never a guarantee. Technological and scientific advances shorten life cycles of products and services, business models change, and new competitors appear from outside the industry. This constant instability makes it necessary to seek new business opportunities. To do this, it is necessary to understand your company’s business direction and to have knowledge of the resources, strengths, and capabilities of your company. In order to identify market opportunities, the business model as a whole must be evaluated by identifying consumers and companies and other factors such as brand value propositions, direct and indirect competitors, supply chains, existing regulations, and the general environment. Here are a few ways to understand new opportunities for your business:
Consumer segmentation
To understand your demand, you must identify consumer segments that share common characteristics. These characteristics can be “hard” variables such as age, gender, place of residence, educational level, occupation and level of income or “soft” variables such as lifestyle, attitude, values and purchasing motivations. Soft variables can help identify motivations that lead to purchasing decisions including price, prestige, convenience, durability, and design.
Purchase situation analysis
Purchase situations must also be examined to uncover expansion opportunities. Questions to ask when reviewing purchase analysis are:
When do people buy our product or service?
Is it when they need it?
Where do people make the purchase?
How do they pay?
Looking at distribution channels, payment methods and all other circumstances that involve purchasing decisions can teach you how consumers buy and how you can position your product appropriately.
Direct and Indirect competition analysis
In addition to analyzing demand and purchasing situations, it is important to analyze supply. Knowing the existing players in the market where you are competing or going to compete is important when evaluating opportunities. Opportunities can also be found by analyzing substitute industries. This type of analysis helps establish competitive advantages against indirect competitors and provide insight on additional opportunities for growth.
Analysis of complementary products and services
You should monitor the performance of other companies’ products, which are complementary to their own. Trends in complementary markets should be taken into account when making investment decisions.
Foreign markets analysis
When a company operates in a mature or saturated market, exploring other countries may lead to additional opportunities. Markets in different countries grow at different paces for several reasons, including disparities in the level of economic development and local habits. Knowing the evolution of per capita consumption of a given product in a given country can serve as an indicator of the maturity of the product’s life cycle. Having information on the size of the market and competitors in other countries will help to estimate the business potential.
While marketing is the primary driving force for business growth, spotting new growth opportunities is also essential for survival.
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Decision-Making
Besides the people making the decisions for purchasing a product or service, another vital aspect is the scenario. B2Cs are often due to an immediate need. B2Bs, on the other hand, often have longer sales cycles. The company offering a product or service will have to woo key decision-makers. The whole ordeal can sometimes take months.
Pricing
Most of the time, B2Cs have lower price points compared to B2Bs. That is because the payment is made once during the purchase. Meanwhile, B2B products and services are usually paid long term.
Customer Relationship
B2C selling is often done as one-off transactions. That means there is no prior contact or ongoing relationships between the consumer and the sales professional or team. The buyer can change their mind after a few days and purchase a different product. B2B selling is the opposite. There is a need to build trust and maintain a relationship in order for the whole process to be an investment for both parties. The sales team works hard to meet the client’s requirements. They prepare the necessary information or content, which will be presented to the decision-makers. Meanwhile, the buying company will have to make sure they are getting the best solutions.
Return on Investment (ROI)
Unlike B2C customers, B2B clients are interested in knowing the ROI immediately. They need to know the sales professionals’ expertise and how the company’s product or service can contribute to the efficiency and productivity of their organization.
Purchasing Cycle
B2C customers often get recommendations from people they know. These include friends and family. Their decision only requires a few minutes. On the other hand, the process of B2B buying has a longer cycle. There are various aspects to consider, such as procurement, accounting, and finances. The approval of several people from different departments may be necessary to make a purchase.
Being in the UAE market and having a diverse business profile, we believe we have somewhat cracked how business is supposed to be done, and we want to help future entrepreneurs and business enthusiast realize their true potential. At Fair Trade LLC we can help you with every aspect of taking your business overseas, to know how, you can visit https://ftrade.ae/business-consultancy/
