2 items tagged "strategic decision-making"

  • Unlocking Success: Five Key Benefits of Market Intelligence

    Unlocking Success: Five Key Benefits of Market Intelligence

    Market intelligence is the process of collecting and analyzing information about the market, competition and customers to gain insights into future trends and business opportunities.

    Five key benefits

    Solid market intelligence is a critical component of any successful business strategy. It provides a comprehensive understanding of the market environment and the factors that impact a business. Market intelligence supports organizations to make informed decisions, minimize risk and stay ahead of competitors. In this blog, we will address five key benefits of market intelligence:

    1. Stay ahead of competitors

    Competitive intelligence is a form of market intelligence, focusing on the competitive playing field of a company. It enables businesses to keep track of their competitors' activities and strategies and better understand their external environment. This information helps organizations to develop and implement effective strategies that can outpace competitors and improve their own market position. Competitive intelligence supports companies in order to get grip on the world of tomorrow and is imperative to ensure survival in highly competitive markets.

    Curious how to organize the process of scoping, collecting and analyzing competitive intelligence?

    2. Make strategic decisions data-driven

    In today’s world, a lot of key business decisions are still being made based on gut-feeling. Use intelligence to start making data-driven decisions. Market intelligence provides accurate and relevant information that businesses can use to make informed decisions. By having access to reliable market intelligence, organizations can make sound decisions that improve their overall performance and help them achieve their strategic goals.

    Recently, we supported a client with market insights to support their commercial strategy, curious to read more?

    3. Assess and minimize risk

    Due to the strong pace in which markets are moving nowadays, there is an increased need to understand the market dynamics of the external environment. Understanding the latter helps businesses to identify potential risks and challenges that could impact their operations and avoid the disastrous effect of blind spots. This information enables organizations to take proactive measures to mitigate risks, such as developing contingency plans, adjusting pricing strategies, or diversifying their products and services.

    4. Identify new market opportunities

    Market intelligence helps businesses to identify new market opportunities by providing a comprehensive understanding of the market landscape, customer needs, and emerging trends. This information enables organizations to tailor their products and services to meet customer needs and to take advantage of emerging opportunities. Solid market intelligence can help identifying ‘hidden gems’ in their business environment. Market sizing can be highly challenging in a B2B environment, as they can often feel like a massive black box filled with blind spots.

    Want to learn how we approach this challenge?

    5. Drive innovation

    Market intelligence provides insight into emerging trends and new technologies, enabling businesses to develop innovative products and services that can give them a competitive edge. This approach fosters a culture of innovation that drives long-term growth and success.

    Value of Market Intelligence

    Market intelligence is essential for businesses to remain competitive, understand their market, reduce risk, improve decision making and achieve long-term success. By providing insight into the market environment, customer behavior, and emerging trends, organizations can develop effective strategies that improve performance and position them for growth. Whether you are a small business or a large corporation, continuous market monitoring can provide the information you need to make informed decisions and stay ahead of the competition.

    Curious how market intelligence can help your business thrive? Get in touch!

    Date: July 14, 2023

    Source: Hammer Market Intelligence 

  • Why Market Research is Key in Business Pivoting

    Why Market Research is Key in Business Pivoting 

    Even if you have a successful company, there’s no guarantee your business model will remain viable for long. So what happens when the market changes, and your business needs to adapt to stay relevant? This is where the concept of pivoting comes in.

    “Pivoting” is common in basketball when the ball-handler keeps one foot grounded while using the other foot to step and rotate in a new direction. Pivoting is quick move a player takes while under pressure to avoid the defense.

    There’s no doubt businesses often feel that same kind of pressure—the moment when a mammoth hard-charging opponent steps in your face, blocks your way, and grabs for the ball in your hands. If you freeze up, you lose. You need to stay collected. Step in a new direction. Look for an opening, and then seize an opportunity.

    When faced with entrenched challenges, businesses must be willing to change strategy and direction too. Ultimately, the game is fluid. If something is not working, an alternate path must be found.

    Pivoting can involve shifting a company's focus from one product or service to another, changing target markets, or even altering the entire business model.

    Business Pivot Examples

    People often point to tech startups as classic examples of businesses pivoting. Early on, Flickr reportedly changed from an online game company to a photo-sharing website, and Twitter switched from a podcast subscription network to a micro-blogging platform. These companies were willing to test out radically different ideas to find a winning concept and fill a gap in the market.

    But tech firms aren’t the only companies that need to be agile. Organizations big and small received a crash course in pivoting during the COVID-19 pandemic. Many restaurants moved seating outside or focused on take-out and delivery during lockdown. Many schools, religious organizations, and yoga studios shifted online. Large firms also had to adjust. One example is Disney, which started releasing new films on its streaming service for an extra fee to circumvent the need for movie theatres. In these cases, people’s behavior had changed, and organizations had to meet their needs in a new way.

    The Inherent Challenges of a Business Pivot

    Of course, pivoting can be challenging, risky, and costly. Change may not work out the way you hope. You still have the potential to fail, and stakeholders may disagree about what needs to happen next. 

    One key point Wharton Management Professor Jacqueline Kirtley shared based on her research is that pivoting takes place over time, and you might not even realize you are pivoting until afterwards. Pivoting involves a significant degree of uncertainty, where you select certain options and keep many others the same. “The decisions are more steps, and they compile, they aggregate into this complete redirection of what we’re doing as a strategy and what we’re doing now,” she explained.  

    Pivoting can be a lot messier and more complex than a simple change in direction, but there’s one secret that can help ensure success: market research. Changes in strategic direction must be done with eyes wide open, with all the necessary information on hand. According to the Harvard Business Review, you must ensure that your pivot aligns with long-term market trends, serves as an extension of your company’s existing capabilities, and offers a sustainable path to profitability.

    To determine if all those conditions are met, market research is an essential component of the decision-making process. With the right market research, you can more easily pinpoint market trends, identify opportunities for revenue growth, and understand how the competitive landscape is shifting. This data can help provide the clarity you need to move forward or make a change.

    How to Change Your Business Strategy

    Pivoting takes time, multiple decisions, and plenty of research. To start:

    • Identify unmet needs: By analyzing consumer behavior and preferences, you can determine what your target audience is looking for that your company is not currently providing. This information can be used to guide product development or marketing initiatives to better meet the needs of consumers. For example, when Starbucks noticed that more customers were interested in sustainable, plant-based options, they expanded their menu to include a wide array of dairy alternatives such as soy, coconut, almond, and oat milk. Starbucks also added a breakfast sandwich made with Impossible plant-based sausage. Although these menu changes do not represent a complete transformation in strategy, these type of ongoing shifts can add up over time to help a business stay relevant in the eyes of consumers.
    • Find ways to differentiate: Evaluate your competitors, so you can identify areas where your company can differentiate itself and provide more value to customers. For instance, when Airbnb realized that travelers were looking for more personalized, immersive travel experiences, they expanded their business to include Airbnb Experiences. This new offering allows travelers to book activities and tours led by local hosts, providing a unique and authentic travel experience that traditional hotels cannot match.
    • Validate and test your ideas: Market research can help you to validate and test hypotheses regarding the potential of a new idea before you take action. Whether you are considering a big shift such as entering a new market, launching a new product, or acquiring a startup, stakeholders will want to know if your concept is validated by objective third-party research. Market data can help you build a persuasive business case for a new idea and mitigate the risk of failure. If the market demand is not sufficient to support a profitable venture, it’s better to know that ahead of time.

    Pivoting your business can be a challenging but necessary step to stay ahead in today's ever-changing world. The good news is that market research can give you a disciplined approach that makes the entire process easier and more successful.

    Author: Sarah Schmidt 

    Source: Market Research 

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