Before establishing any business thorough research of the market is crucial. It will help you analyse whether your enterprise will stand in the market or not and is it a good time to step in the market.
What is market analysis?
Market analysis is a quantitative and qualitative assessment of the market. It is the most important part of market research. It looks aspects like size and value of the market, competition, consumers and the economic environment. For analysis the market a particular market is taken into account. By studying this specific market a business can look into the opportunities and risks involved in stepping foot into that market.
Companies try to extract reliable information. Small business tend to do it by themselves, while larger enterprise hire market research institutions for the same.
Purpose of market analysis
Market analysis enables to understand the structure of the market. It focuses on specific characteristics only. It provides information about consumers, competitors, and aids in decision making.
One can recognise market potential and draw out figures and facts.
It helps a business owner to study the strategies of the competitors present in a particular market.
Difference between market research and market analysis
There terms are very confusing but let’s clear them out. Market research is the detailed investigation of a market while market analysis focuses on a specific market at a definite time period.