Prior to engaging in a business concept, it is incredibly beneficial to assess your market viability. When identifying a new market to enter, conducting proper research to establish a focused target market will create strategic alignment and clearly communicate your value and aid in building a customer-driven growth engine as you move into the implementation phases.
The guidelines you establish for your assessment will provide a realistic data return with valuable insights as to what your buyer persona cares about. You will be able to engineer a strategy that is relevant to the new technology developments and trends while co-creating solutions with your potential clients in today’s digital age. Market viability cannot be assessed until proper guidelines are established. Two common approaches for researching market trends involve conducting a SWOT or PEST analysis. Just like large corporations, small businesses can benefit immensely from assessing market validity.
SWOT analysis assesses the strengths, weaknesses, opportunities, and threats within an organization. In a multinational corporation analysis are used to develop and iterate on sales processes and teams, marketing initiatives, branding, and strategic initiatives. To further develop internal sales processes and teams, a SWOT analysis can give an in-depth look of where the organization is lacking in terms of producing a customer-focused strategy that can withstand its competitors and provide an environment where customers feel continuously supported.
In addition to providing a customer-focused environment, SWOT analysis help offset developments in utilizing marketing to the organization’s advantage. In the below SWOT is an example of where Microsoft lacked traction in its user interface approximately six years ago. Assessing where they were, and their market capabilities today only reinforces the value behind conducting a proper SWOT to iterate on paired with extracted consumer data to develop marketing campaigns around the areas that have very little traction in the marketplace to increase profits in the long run.
Sample SWOT Summary
● Microsoft’s Expansive Windows Operating System Partnerships
● Windows Word Processing Software
● Global Reach
● Financial Position
● Bing Search Engine
● Operating System & Word Processing Software High Cost
● Mobile Market Presence
● Lack of Innovation in Product Development
● Xbox Gamer Market
● Mergers & Acquisitions
● Mobile Market
● Cloud-Based Service
● Leading Competitors
● Consumer Behaviors
● Open Source Projects
● Lack of Free App Integrations
A SWOT would require far more detail and would benefit from a combination of tactics including a fully vetted PEST analysis. There isn’t a right or wrong strategy for setting up an analysis if it’s documented against the industry benchmarks you aim to set. A PEST analysis considers the economic, political, social and technological performance of competitors within your market. This is taken from the perspective of how you will respond to the changes that your competitors have experienced and if your company has a proper risk and mitigation strategy behind it. Collecting this information via traditional web research or industry reports using Morningstar or CrunchBase is an easy way to begin your research.
SWOT and PEST analyses provide a 360-view of how to see yourself performing among competitors within your go-to-market strategy. Assessing the strengths allow you to understand where you can quickly build momentum with new prospects. Understanding allows the economic and political components enable you to focus your resources on reinforcing any holes in your plan that may interrupt your market points of entry. Your opportunities and social engagement emerge as well as the market changes or if your product or service has identified what is missing in the marketplace. Your opportunities and technological assessments provide pivot areas to capitalize on based on your competitors’ weaknesses. In establishing these guidelines, it is important to review the data available from direct competitors (primary), secondary competitors and tertiary competitors. Collect data relevant to how they communicate their brands to users, and where they can improve. Tech Treats, LLC understands how various organizations must develop around a specific marketplace and can help implement any strategic vision while considering the competitive landscape.