The Business attractiveness model is a useful framework to analyse the feasibility and viability of new or existing business in the given market
Analysis of all 9 forces can help to generate an in-depth knowledge which could be useful information in decision making and strategy formation.
Analysis of all 9 forces can help to generate an in-depth knowledge which could be useful information in decision making and strategy formation.
1] National competiveness can identify the competiveness of the country where the business is intended to be established. The factors to analyse national competitiveness are - natural and artificial resources available, government support, presence of related and supportive industry, availability of skilled and unskilled human resources, & appropriate infrastructure. In-depth analysis of these factors will provide an useful information about the attractiveness of the country.
2] External Environment check will provide a thorough analysis of political, economical, legal, social, technological systems of the target market.
3] Industry structure analysis can provide a clear picture of industry competitiveness and the presence of competitors, customers, suppliers, and all other related players.
4] Similar to mankind, business industries pass through different life cycle. Each stage poses different challenges and opportunities for the existing and new players in the industry. Industry life cycle analysis can help in segmentation, positioning and targeting the customers with appropriate marketing mix.
5] Market trends identification is key research for every business. Identifying positive and negative trends towards of the market related to the products/services helps the business to customize them to meet the demands of the target customers.
6] Differentiation possibilities of the products/services depends upon several factors such as price, number of competitors, customers readiness, resources availability, cost of differentiation, and life cycle of the industry. Analysing these factors will help understand the dynamism of the industry.
7] Cyclicality of product/service is the term used to measure the quantity of the product /service sold in a given timeframe. Some products/services are consumed more often than others. Depending upon the characteristics of the products/services and their importance in daily life, its cyclicality can be measured.
8] Value perception is the sense of knowledge/awarenss about the products/services and primarily its importance to the target customer. Higher possibilities of creating value through process or products/services can increase the growth potential of the business.
9] Profit margin/ROI is the bottom-line which every business expects to generate. Preparing a well-defined business plan with all minute details will help to figure potential profit margin and also ROI.
© 2008 Samir Randive
2] External Environment check will provide a thorough analysis of political, economical, legal, social, technological systems of the target market.
3] Industry structure analysis can provide a clear picture of industry competitiveness and the presence of competitors, customers, suppliers, and all other related players.
4] Similar to mankind, business industries pass through different life cycle. Each stage poses different challenges and opportunities for the existing and new players in the industry. Industry life cycle analysis can help in segmentation, positioning and targeting the customers with appropriate marketing mix.
5] Market trends identification is key research for every business. Identifying positive and negative trends towards of the market related to the products/services helps the business to customize them to meet the demands of the target customers.
6] Differentiation possibilities of the products/services depends upon several factors such as price, number of competitors, customers readiness, resources availability, cost of differentiation, and life cycle of the industry. Analysing these factors will help understand the dynamism of the industry.
7] Cyclicality of product/service is the term used to measure the quantity of the product /service sold in a given timeframe. Some products/services are consumed more often than others. Depending upon the characteristics of the products/services and their importance in daily life, its cyclicality can be measured.
8] Value perception is the sense of knowledge/awarenss about the products/services and primarily its importance to the target customer. Higher possibilities of creating value through process or products/services can increase the growth potential of the business.
9] Profit margin/ROI is the bottom-line which every business expects to generate. Preparing a well-defined business plan with all minute details will help to figure potential profit margin and also ROI.
© 2008 Samir Randive
