Market and Competition Analysis – Identify your business’s strengths and challenges

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When opening any business, entrepreneurs certainly analyze what type of product/service they intend to offer, operating costs and geographic location, for example. But it is necessary to go further!

To this end, Market Studies are strategic tools for anticipating trends and understanding the segment in which you operate. You need to be clear about the characteristics, needs and consumption capacity of your target audience. This is the only way to achieve the expected success!

Below, we explain more about how your company can vnpay database out these surveys, seeking valuable insights for commercial growth!



What is a Market and Competitor Analysis?



A market analysis (or study) is one of the main components of a company's business plan. It is based on this that you will be able to better understand your segment, your customers and competitors. The objective is to understand the environment in which your product/service will be offered and, thus, define the most efficient production, sales and marketing actions.



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SWOT analysis: what are the strengths and challenges of your business?



No research can begin without a prior assessment of your business. To better assess the scenario, you need to have clear objectives in mind: increasing your customer base , optimizing your sales team's actions or improving your customer retention rate , for example.

Therefore, the ideal is to carry out a SWOT Analysis of your product/service. The acronym comes from the English terms Strengths, Weaknesses, Opportunities and Threats .

Understand that from the very beginning, it is necessary to look at both the internal and external aspects of your business. Here, the goal is to identify what is already good compared to the competition and the needs of your desired customer. And also, which weaknesses can be transformed into opportunities to improve your actions.

Risks focus on both the financial and commercial areas of your company and the production itself. Are your suppliers able to serve you adequately? Could your customers default ? Will your outflow needs ( logistics and distribution) be met?

In short, no research can begin without defined objectives. These are what will provide structure and direction for the analysis of the data obtained.



Main elements of research



When carrying out a market study, you will be able to access information such as:



the estimated size of your target audience;
which regions are more or less opportune for your product/service;
what are the main segments in which your company operates;
who are your competitors – the main players within your niche;
the size of the competition;
monitoring prices and sales channels ;
market size and share – what market share does your company serve?


The size and depth of the analysis performed varies from company to company. After all, each company has its own specific commercial objective, goals and business needs. Each study is fully customized, supporting strategic and more assertive decisions.



Read also: “ What is Market Intelligence? ”



And what are the sources of this data?



To conduct a market study, information is collected from public and reliable sources such as IBGE, Caixa, Social Security, Federal Revenue, Portal Brasil and the Ministry of Finance, for example. In addition, some modalities also analyze transactions with electronic invoices , as these documents are also public.

If you want to enhance your research, you can also conduct interviews with active and potential customers to understand their consumption habits, preferences and real needs.