Ways to Find Growth Markets

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Growth and profitability aren't guaranteed in today's corporate environment. Technological innovations reduce product and service life cycles, modify business models, and bring in new competitors. This volatility requires new business opportunities. This article outlines a few ways to identify business growth prospects.

First, define a search framework. To do this, know your company's business direction, resources, strengths, and capabilities.

After knowing firm goals and areas of competence, analyze the market to see how companies are meeting consumer wants. To find market prospects, the entire business model must be reviewed, including consumers, firms, brand value propositions, direct and indirect competitors, supply chains, legislation, and the general environment. Let's analyze these factors below.

?Market Analysis Approaches

Segmenting consumers

Identify consumer segments with similar features to understand demand. "Hard" variables include age, gender, place of residence, educational level, occupation, and income level. "Soft" variables include lifestyle, attitude, values, and purchase reasons.

Hard variables help estimate a business's consumer base. A diaper manufacturer should know how many children under 3 exist in a country and its birth rate. Soft variables include price, prestige, convenience, durability, and design.

Purchase analysis

Examining purchase circumstances for expansion opportunities. Purchase analysis questions:

• When do our customers buy?
• Is it essential or desirable?
• Where do people buy?
• Who pays?

Distribution routes, payment methods, and other buying-related factors can tell you how people buy and how to position your goods. New retail options may attract customers. Emergence of kiosks in transit stations, promoted on-the-go consumption.

Another consideration is payment methods. Digital Payment solutions allows shoppers without credit cards to add credit to their accounts and shop online.

Analyze Direct Competition

Supply must be analyzed along with demand and purchase. When analyzing opportunities, it's crucial to know your competitors. Questions to ask:

???????What are our industry's fastest-growing products and brands, and why?

???????What's their USP?

???????What's our competitive edge?

Examine the alternatives

Analyzing alternative industries can reveal opportunities.?This study helps develop competitive advantages versus indirect competitors and identify expansion prospects.

Product/service complementarity analysis

Complementary items should be monitored. A packaging company should track sales of things it could package, while a coffee machine manufacturer should track coffee sales. When investing, consider complimentary market trends.

Analyze other Industries

In certain circumstances, companies aim to extend a business model or ideology, not an industry.?To enter a new industry, learn about competition first: market sizes, market shares, growth rates, unit prices, per capita sales, and brand positioning.

Analyze Foreign Markets

When a company's market is mature or saturated, other countries may offer opportunity. Various countries' markets grow at different rates due to economic progress and local customs. Knowing a product's per capita consumption in a certain country can indicate its maturity. Market size and foreign rivals assist determine business potential.

You can also research developed countries' consumption habits in addition to product sales.

• How many people pay with a smartphone?
• What is private label's market share?

Answers to these questions in developed countries can indicate the indices' potential in their country. Monitoring other countries may lead to new products or services in your market.

Environmental analysis

Changes in the environment, such as technological and scientific advances, might also reveal market opportunities. Airbnb and Uber have new business models thanks to the Internet and cellphones. AI, robotization, IoT, biotechnology, and renewable energy also offer commercial potential.

Regulatory changes can generate opportunities. Many countries, now require labels on high-calorie, high-sodium, high-sugar, and high-saturated fat item.?This obligation could boost sales of healthier products not affected by the new labelling.?

Climate change, geopolitical upheavals, and financial market changes affect market opportunities. Using market research to understand the local business environment will help your approach succeed in a new or developing market.