How can you use trend research to avoid business risks and threats?

In my experience In corporate world, objectives are qualitative statements that outline where you want your business to go. The overarching strategy of the business guides them. Increasing profits is probably the most common for-profit business objective, but boosting market share, sales and expanding customer bases follow closely behind. In any business research , key objectives are always looking for competitors what they doing, sales analysis , product analysis , customers feedback & reviews (how and what they feel about brand and product)and finding a gap to bring new or to place existing products are the main.

To mitigate business risks and threats, establish clear objectives through a comprehensive risk management framework. Begin by conducting a thorough risk assessment to identify potential hazards. Define specific, measurable, achievable, relevant, and time-bound (SMART) objectives that align with your business goals. Prioritize risks based on impact and likelihood, focusing on high-priority areas. Implement preventive measures and contingency plans to address identified risks. Regularly review and update objectives to adapt to evolving threats. Foster a risk-aware culture among employees, encouraging proactive identification and reporting of potential risks. Continuously monitor and evaluate the effectiveness of risk mitigation strategies.

Trend research is a proactive tool to mitigate business risks and threats. By identifying emerging trends in the industry, market, and consumer behavior, businesses can adapt strategies to align with opportunities and challenges. Staying ahead of trends enables timely adjustments to products, services, or operations, minimizing vulnerability to shifts in the business landscape. Additionally, trend research aids in anticipating customer preferences and technological advancements, fostering innovation and resilience. Regular trend analysis fosters strategic agility, helping businesses not only navigate change but also capitalize on emerging opportunities, thus enhancing overall risk management.

Harnessing trend research to prevent business risks involves collecting and analyzing data to identify key trends. Methods include surveys, market reports, and social media analytics. Analyzing trends with data-driven insights and visualization tools helps identify opportunities and threats. Regularly updating trend analyses, scenario planning, and data-driven decision-making enable organizations to stay agile and navigate uncertainties effectively, minimizing risks.

Collect any data you can for a time series. Then run correlation analysis to see which measures are (or could be) drivers of the objective measure. You can do this in Excel. Remember correlation does not state causation but it removes any measures that you don't need to track. In #FMCG, EPOS data and Shopper Data (i.e. Kantar) can be used to see trends. If its a volatile market (or dataset), try using a Rolling MAT (Moving Annual Total) to remove the spikes. Gives a longer term trend. There are many other measures you can derive from these types of data. Happy to share more info...

Data collection and analysis are fundamental in identifying and understanding industry trends. Utilize a blend of primary and secondary sources, alongside analytical tools like Google Trends, SEMrush, and BuzzSumo, to gain a comprehensive view of your market. This methodical approach, combining both quantitative and qualitative data, ensures a well-rounded analysis, providing valuable insights for informed strategic decisions and staying ahead in your industry.

Right after spotting a trend, investigate their drivers. Why is sustainable shopping surging? Is it eco-conscious millennials or a broader push for ethical sourcing? Understanding the "why" behind trends helps predict their staying power and tailor your response.

After data collection and analysis, the next critical step is to identify and validate emerging trends that significantly influence your market and industry. A valid trend reflects a change in consumer behavior, preferences, and expectations, and should align with your data. Look for trends that are relevant, novel, and impactful. Crucially, verify these trends through multiple sources, experts, or stakeholders to confirm their validity and reliability. This careful validation ensures that the trends you pursue are grounded in reality and are likely to have a meaningful impact on your strategies and decisions.

Once trends are identified and validated, evaluating and prioritizing them is key. Utilize frameworks like PESTEL analysis to understand the impact of trends on political, economic, social, technological, environmental, and legal factors. The Ansoff matrix is also useful for classifying trends based on market penetration, product development, market development, or diversification potential. Rank these trends based on their importance and feasibility relative to your business goals and strategy. This prioritization ensures that you focus on the most impactful trends, aligning them with your strategic objectives for effective market positioning and business growth.

Identifying the useful KPIs to look at the trend of market is the most important thing. Once that is done the second important thing remains is frequency at which these to be reviewed and the responsible person for monitoring that movement. Once that information flow is designed, the actions are trend driven as per market not reactive.

Applying and monitoring identified trends is crucial for minimizing business risks and adapting to market changes. Implement these trends to enhance marketing decisions in areas like product design, pricing, promotion, and distribution. They are also vital for anticipating and mitigating risks associated with shifts in consumer behavior and preferences. Regularly monitor these trends and update your research to stay aligned with the dynamic nature of the market and industry. This ongoing vigilance ensures your business remains responsive and proactive, effectively leveraging trends for growth and stability in an ever-evolving landscape.

Utilize trend research to foresee potential shifts in consumer behavior, market demands, or industry disruptions By staying informed, you can proactively adapt strategies to mitigate risks and pivot to align with emerging trends, reducing the impact of potential threats on your business

Founders, remember that embracing change is key to success. In the dynamic realm of entrepreneurship, agility and adaptability are your best friends. Stay attuned to market shifts, pivot when necessary, and always prioritize learning and innovation. Your ability to evolve alongside your industry will determine your journey from startup to success story.

Always be aware of what's changing around your market that could be a risk or threat. What could affect your target customer or how they solve the problem you solve for them. Kodak not seeing digital cameras as an issue or UBER's impact on Taxi companies come to mind. Its easy to stay too focused on yourself at times.